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Market & outsourcing watch 2005

 
 

Find papers, articles, opinions - developed by EuroITX.com and others  - as well as news and links on ICT and off-shore outsourcing market development in Europe and globally.

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July | August | September | October | November | December |

 

December

Extending India’s leadership in the global IT and BPO industries

  Based on the industry's experience over the last three years and the changing nature of customer needs, the report underlines the fact that a new approach needs to be followed by Indian IT companies in the coming years, to extend their global leadership position.

From Russia with Love

  India and China may get all the offshoring press, but Russia's in the game too. While India gets all the attention in offshore outsourcing, Russia has expanded steadily over the last few years and is rapidly becoming a major destination for American offshore software development business.

IT Outsourcing Destination: Russia

  There is a lot written about Russian IT and software development capabilities, and the opinions are so diverse that no other country, in our view, has experienced such polarization of analysts and other influencers towards Russia.

Building an offshore presence

  Outsourcing remains a key part of the IT strategy of many organisations, to the extent that it there are now estimated to be in excess of 10,000 vendors in more than 175 countries claiming to offer some form of offshore outsourcing service.

French doubts grow over the benefits of offshoring

  French businesses are becoming sceptical about the cost benefits of offshoring, the practice of moving work to cheaper overseas locations. But companies believe investing in overseas markets can save jobs at home, according to a survey published by the consultants KPMG and Medef, the French employers’ group.

Global ITO and BPO trends for 2006

  Globalized IT outsourcing – is it a viable option to onshore outsourcing? Discrete outsourcing – is it a preferred sourcing strategy? Will established providers be able to continue to command premium pricing? Tactical vs. Transformational approach to services globalization – What are clients really looking for? Are there any shifts in the value that is being sought from engagements? Supplier markets – which are the emerging ones? Is China really a threat to India?

Traditional procurement processes are leading to sub-optimal BPO deals

  Alsbridge, the Independent Advisors on Outsourcing, Shared Services and Offshoring, today publishes the findings from a recently completed Supplier Think-tank focused on the industry’s mainstream procurement process. The think-tank, which took place in November 2005, drew together ten BPO experts from different Supplier companies to discuss the BPO sourcing process.

OFFSHORING 2006: BEYOND BANGALORE

  High-tech manufacturers are gushing about China. Brazil offers the great benefit of being in the same time zone. Russia has a pipeline of talented young engineers and mathematicians. Poland and its neighbors, the Czech Republic, Romania and Hungary, are attracting interest. And watch out for the Philippines.

China, Lethargy Pose Threat to Indian Offshoring Success

  India will have to pull up its socks if it has to retain its edge in the global offshoring scenario as China is rapidly catching up with improved communication and training facilities in English, world-class infrastructure and strong urban facilities.

India faces offshore IT skills crisis by 2010

  A huge IT skills shortage and poor physical infrastructure could threaten India's position as the leading offshore outsourcing location by 2010, according to a new report.

The crucial challenges of offshoring

  The lure of potentially massive savings in wage and benefit costs may continue to fuel the global offshoring movement, but companies cannot remain blind to the wide range of people management issues this raises both overseas and at home.

Ukrainian Hi-Tech Initiative

  Ukrainian Hi-Tech Initiative is a leading Ukrainian alliance in Offshore Software Development and IT industry.

The Politics and Economics of Offshore Outsourcing

  During the presidential campaign of 2004, no economic issue generated more heat or shed less light than the debate over offshore outsourcing.

Lessons in how to succeed at offshoring

  First-time offshoring customers often encounter a rash of unexpected difficulties, such as lower-than- anticipated cost savings and the need to send IT managers overseas for extended periods to resolve project problems.

IDG launches ‘Services Outsourcing World’

  International Data Group announced the launch of Services OutSourcing World, which will provide business information to purchasers of outsourced information technology and business process services.

Offshoring Awimowehs to Africa

  Botswana is emerging as an attractive location, according to a new report; telco costs and stereotypes are limiting factors. More fromVNU.net

Offshoring And Beyond

  Business-process offshoring is still a nascent industry. By McKinsey estimates, in 2002 it was worth $32 billion to $35 billion--just 1% of the $3 trillion worth of business functions that could be performed remotely.

Indian IT market comes of age

  After years of astronomical growth, the question of how long the Indian outsourcing model can continue its sustained rise is becoming more pressing.

November

India: Desperately Seeking Talent

  As the economy booms, companies are scrambling to find, and keep, skilled Indian workers

AT Kearney: Annual Global Services Location Index

  India and China are the top outsourcing destinations, followed by South-East Asian countries. While, India's lead over China is still very large, it has slightly reduced as compared to 2004. Wage inflation and increased competition are cited as the reasons for the reduction of the lead.

The French Warm to Offshoring

  The United Kingdom may have led the trend in outsourcing to India a decade ago, when British Airways moved its back-end business processes there, but now a couple of large French companies are warming to the cost savings associated with shipping work to the subcontinent.

Outsourcing works better when based on trust

  Organisations that develop their firm’s outsourcing relationships based upon mutual trust rather than relying on punitive service level agreements and penalties will benefit from a “trust dividend” worth as much as 40% of the total value of a contract, according to research by the Warwick Business School.

Possibilities and Pitfalls of Outsourcing

  Outsourcing has become a $4 trillion-a-year business, according to Dun and Bradstreet. Outsourcing potentially enables businesses to reduce costs and concentrate on core competencies while transferring noncore business processes, thereby providing more effective goods and services elsewhere.

Information Kit: offshore outsourcing

   

Fundamental changes rock IT outsourcing

  The global outsourcing market is undergoing "fundamental changes" including a dramatic shift to more business process outsourcing (BPO), an increase in the number of players, and a reduction in total deal value. Read more

Dubai: The next big thing in outsourcing?

  Dubai has kicked off an effort to land some of the outsourcing work that is heading to countries with low labour costs like China and India.

What is KPO?

  KPO involves offshoring of knowledge intensive business processes that require specialised domain expertise, thus delivering high value to organisations by providing business expertise rather than just process expertise.

 UK firms 'up pace of outsourcing'

  The number of UK financial services jobs outsourced to low-cost centres abroad is expected to soar to 180,000 by 2010, according to a survey.

Report outlines concerns and opportunities in offshoring  

  Canada needs to do more to protect vulnerable knowledge industry jobs, while at the same time seizing the opportunities presented by offshoring and outsourcing, says a new report from PricewaterhouseCoopers.

Legal outsourcing: India to get 79,000 jobs

  India has huge potential in legal outsourcing, with the number of jobs in the field increasing to 79,000 by 2015, a study by an American research firm has said.

Gartner slams outsourcing myths

  Organisations are embarking on outsourcing without thinking through the complex train of consequences

MOOS - Offshoring tracking tools on line

  Two new tools have been added to MOOS (Making Offshore Outsourcing Sustainable) to facilitate the reporting of offshore activities. These tools are the MOOS tracker, used to find information about upcoming and on-going cases of relocation, and the MOOS questionnaire, used to collect more in depth information to better understand the context and impact of offshoring activities.

Outsourcing captures Europe's imagination

  Europe, slowly but surely, could become one of the leading markets for offshore contracts.

 India becomes a hub for healthcare outsourcing

  Advanced healthcare services are fast emerging with Business Process outsourcing (BPO) and Information Technology Enabled Services (ITES) units in India after the Information Technology, banking and legal outsourcing showed incredible performances.

Indian outsourcing boom may end abruptly

  If America and Western Europe go into a deep recession, Indian outsourcing sector will collapse like a falling ball from a plane.

New Obstacles Dogging Outsourcing Customers

  "Ninety percent of outsourcing deals fail because customers don't measure the results of the work being done," said Keith Fiveson, managing consultant at ITESA, a New York-based consulting firm.

Study adds more fuel to the outsourcing fire

  A new report that says offshore outsourcing lowers production costs for IT vendors and leads to creation of hundreds of thousands of jobs is being attacked by the Electrical and Electronics Engineers-USA (IEEE-USA), an association for U.S. IT workers. More

Cost, scale still drive outsourcing globally

  Largely most customers are still looking at cost, time to market – bandwidth and scale that you get in India in a much more rapid time.

European IT SMEs in India

  A study, from late 2004, looks at how European SMEs are leveraging Indian offshore capabilities to reignite and sustain growth, improve financial performance and capture new markets. May be not all the numbers and market developments are completely valid now, but the SME cases presented in the paper are worth reading.

Problems with offshoring

  Trends in overseas outsourcing and the implications for nations riding this global wave.

October

Outsourcing to the Philippines: Metro Manila and Beyond

  This whitepaper goes beyond the Philippines country’s capital city, Metro Manila, which has long dominated the country’s other cities as an outsourcing destination. It brings to light eight other cities that have emerged to not only complement but also contend with Metro Manila as viable outsourcing destinations.

Outsourcing - the people issues

  Outsourcing only succeeds with the backing of the staff affected. So how should CIOs win over apprehensive employees?

As outsourcing matures, new trends emerge

  Utility services and modular, or "component," offerings are trends that are emerging as the outsourcing industry reaches a new level of maturity.

More but smaller deals being made

  Companies are spending less on outsourcing as global contract values have shrunk by a quarter this year.

 Weaknesses of the Indian BPO industry

  Even India has a long way to go in BPO services.

Selecting Metrics In Applications Outsourcing

  Outsourcing works well when there is something to measure, something to count, a pricing metric, that is repeatable and easily understood by both parties to the agreement. These metrics are simple and easy to understand and count

Losing the Offshoring War

  U.S contact center growth is being hampered by consolidation among outsourcing providers, which is expected to continue as new offshore markets emerge.

Offshore software product development is changing

  Software companies are increasingly outsourcing product development to vendors to save on time and focus on branding.

September

Sourcing of IT-Services to Offshore Destinations

  The report covers both offshore and nearshore out­sourcing. After examining the forces driv­ing global outsourcing, the report discusses critical success factors in an offshoring relationship, and the process to follow to effectively evaluate and select offshore suppliers and integrate supplier and parent operations – considering the cross-cultural factors also. Download from here .

Mapping Offshore Markets Update 2005

  Overall, India and Canada retain their dominant position in the ITO and BPO industries. However India's weaknesses in certain segments have resulted in opportunities being exploited by newer offshoring destinations. Poland, for example has shown remarkable growth as an outsourcing destination in both ITO and BPO. After registration download from here .

Ensuring India's  offshoring  future

  The country must not only produce more top-quality engineers but also show the world the depth and quality of its talent in other fields—and in cities beyond Bangalore and Mumbai.

UK tops European outsourcing league

  Britain extended its lead as the top European outsourcer during the second quarter of 2005, according to research.

PWC: Offshoring Set to Double in the Financial Services Sector by 2008

  The scale of offshoring in the financial services sector is set to virtually double by 2008, according to PricewaterhouseCoopers latest survey entitled Offshoring in the financial services industry: Risks and rewards. Download the survey here .

SURVEY: RETENTION HOT, BUSINESS INTELLIGENCE NOT

  Polling some 90 IT executives from its roster of members, the Society for Information Management (SIM) announced some surprising preliminary results.

Forrester urges European outsourcing re-think

  European businesses need to change the criteria they use for assessing outsourcing contracts, according to analyst Forrester Research.

Indian labour shortage may affect offshoring, says Gartner

  A shortage in skilled labour is negatively affecting the Indian call centre industry and is likely to get worse, according to Gartner. The analyst firm predicts that the shortage will impact on the cost, quality and security of offshore projects.

10 Ways to Get Offshoring Right

  Establish a precedent of open, honest communication at the start and spend extra time with potential vendors. Building personal relationships can bolster the institutional relationship. Experts urge regular visits to offshore vendors and investing time to get to know individuals in both business.

More firms eye offshoring, but results mixed - study

  More financial companies around the world expect to send work to overseas centres to cut costs over the next few years, although many firms are unhappy with the service they get.

Microsoft Web plan takes aim at Google

  Microsoft will take aim at rival Google next week with a new Web development plan.

European tech giants form software consortium

  British Telecom, Nokia, SAP and Siemens are among a dozen or so high-tech companies lining up to support efforts to strengthen Europe's position in the global software and information technology industries.

Poor testing key to outsourcing failure

  Testing carried out during out-sourcing projects is alarmingly under funded and rarely thoroughly conducted, according to research by testing company IS Integration and the National Outsourcing Association.

Perspective: The Philippines Offshoring Opportunity

  The Philippines has emerged as a strong player in the rapidly evolving offshoring industry, competing successfully with India and other low-wage destinations in creating value. After registration download the report here .

Ensuring India's  offshoring  future

  The country must not only produce more top-quality engineers but also show the world the depth and quality of its talent in other fields—and in cities beyond Bangalore and Mumbai. Read the article after registration.

The Emerging Global Labor Market - recap from June 2005

  A three-part series explores the impact of offshoring services on specific industries, economies, wages, and employment and how companies should select offshore locations. Part I looks at the potential and actual demand for offshore talent in eight sectors. Part II evaluates the suitable labor pool for various services occupations around the world. And Part III examines the fit between demand and supply of remote labor and implications for employment, wages, and location selection. After registration download the report here .

August