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Market & outsourcing watch 2006

 
 

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.

January | February | March | April | May | June |

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

December

Q & A With Kiran Karnik, President, Nasscom

  Kiran Karnik, President, Nasscom talks on the association’s new initiatives to promote the industry and the direction the Indian ITeS-BPO industry should take to see steady growth in the face of global competition

IT offshoring: It's not just for India anymore

  India once got 80% of U.S. spending on offshore work; now it gets about 59%

Dutch Agency Picks Annik For Trade Promotion

  As a part of a programme launched last year, CBI will help Annik enter the European Market.

Eastern Europe: outsourcing hotspot?

  Eastern Europe could soon become a favourite location for offshore outsourcing, with activity in the region estimated to triple between 2005 and 2008.

Rising wages forcing companies to look beyond India

  Skills shortages and rising wages in India will increasingly force UK businesses to look at alternative offshore outsourcing locations, according to the National Outsourcing Association (NOA).

Attitudes harden against offshoring

  Popular hostility towards offshoring and increasing economic globalisation is growing in the UK as a new survey finds that eight out of 10 Britons want to see a halt in jobs moving overseas.

November

Identifying the right outsourcing strategy

  For far too long, the issue of outsourcing versus insourcing has had the proportions of a religious debate between often fanatical supporters and opponents of both.

Filipinos expand U.S. outsourcing

  While India remains the country of choice, call centers in the Philippines are a booming business.

US firms turn to Israel as outsourcing alternative

  Besides lower costs, nation boasts pool of educated, English-speaking workers.

Contact Center Outsourcing: EMEA Bound

  The Middle Eastern and African contact center outsourcing markets will see tremendous growth, suggests a recent report by Frost & Sullivan. Following the successful growth of call centers in Central and Eastern Europe.

What You Need to Know to Avoid Outsourcing Risks in 2007

  Risk-mitigation practices for outsourcing for the coming year can be segmented into six categories.

Seven Trends in Offshore Outsourcing for 2007 and Why They Matter

  Here are seven trends among the dramatic changes that every large enterprise and mid-size business needs to understand when considering offshore outsourcing in 2007.

Trends Highlight Changes in the Way Companies Will Do IT Outsourcing in 2007

  In recent years, enterprises rarely approached IT outsourcing (ITO) as anything more than a commodity. Not any more. It's quickly heating up as a way to meet new challenges, and buyers are lining up.

Outsourcing in China

  Most providers target the burgeoning domestic market, but a few offer a hybrid approach that appeals to the West.

Poland is preferred outsourcing destination for HCL

  To deliver its clients multilingual and near shore business process outsourcing services, HCL, India based software and outsourcing company has zeroed on Poland as its next delivery center.

Vietnam ranks just behind India for global outsourcing

  HCMC, which edged out Manila and Shanghai, possessed a pool of high-caliber talent with more than 100,000 people graduating annually, the report said.

Tricks of the BPO trade

  Outsourcing is already commonplace, but as it stretches from the IT infrastructure into the back office, the next major upheaval for the CIO is likely to be in the form of business process outsourcing. Patrick O'Brien quizzes two industry leaders about best practice in BPO.

October

Market Overview of the Americas Region (pdf)

  Seven destinations for global services sourcing in the Americas region – Canada, Mexico, Brazil, Costa Rica, Chile, Argentina, and Nicaragua – in terms of five factors that affect a country’s overall suitability as a global services sourcing destination.

Global City Competitiveness (pdf)

  The Global City Competitiveness report provides enterprises a perspective on the current strengths and weaknesses of various cities in order to find a fit that meets their global sourcing requirements.

Mainframe outsourcing trend beginning to reverse

  For the last 15 years, the overall trend in IT has been towards outsourcing -- but that trend is apparently beginning to reverse.

Incentives mooted to lure outsourcing to SA

  The trade and industry department envisages sweeping legislative changes to improve SA’s competitiveness in a bid to attract business services to SA, boost job creation and foreign direct investment.

The TPI Index Europe - Q32006 (PDF file)

  The recent TPI Index report has pointed out a drop in global outsourcing contracts both in terms of value and volume claiming revised contract durations along with contract restructuring as the prime reasons. IT outsourcing (ITO) is predicted to drop by 3.6 this year but business process outsourcing (BPO) is seen rising by 10 pct.

EU ICT Market to Reach GBP 644Bn in '06 - Study

  According to a study by the European Information Technology Observatory (EITO), the Information Technology and Telecom (ICT) market in the European Union (EU) has grown by 3 percent to GBP 644 billion in 2006. Download

Offshore outsourcing in Denmark

  National report on offshore outsourcing in Denmark. Danish companies involved in offshore outsourcing.

September

Competitiveness, Not Offshoring, Is EU Weakness

  Data show the euro zone's failure to keep up with tech change, and its poor innovation rate, pose greater problems than cheap foreign labor.

Introduction to Outsourcing at Major Software Development Project

  The worldwide outsourcing market is expected to grow from $161.9 billion in 2002 to just over $235.6 billion in 2007 at a compound annual growth rate (CAGR) of 7.8 percent.

SMEs embrace hybrid outsourcing

  Survey: The Institute of Directors has found that most small firms see technology as critical to their future success. Download

TCS changes the rules of outsourcing

  Tata Consultancy Services (TCS), the largest software services company in the country, is changing the rules of the outsourcing game yet again.

CIO Forum: SMEs to ride next offshoring wave

  Small businesses will be the next to benefit from offshore outsourcing - but it might not be a route taken by every company.

CIO Forum: CIOs still split on outsourcing

  'It's mine and you can't touch it' versus 'why on earth would I still want to manage that?'...

Avoid the "curse" of cheap outsourcing deals

  Outsourcing deals based on selecting the supplier with the cheapest bid are the most likely to run into trouble, according to research by the London School of Economics (LSE).

Czech move as nearshore outsourcing grows

  Infosys last week became the latest Indian IT outsourcing specialist to bolster its presence in Europe, announcing plans to double the size of its Czech “nearshore” development centre to over 350 seats.

New Datamonitor report looks at future of outsourcing

  In its report, The Future of Outsourcing, independent market analysis firm Datamonitor examines what lessons from the past the new wave of outsourcing can learn from and what will drive its success going forward.

The future of outsourcing

  Outsourcing is increasing its reach in terms of vertical industry reach as well as geographic scope. While the firms investing in it are wide-ranging, their individual needs are all similar in that they need to reduce overheads as much as possible. Yet the outsourcing phenomenon is rarely understood.

IT offshoring set to grow

  UK companies will double offshore IT services staff numbers by 2008, according to analyst Ovum

Outsourcing Benefits Rarely Understood

  Outsourcing is one of nearly every industry’s necessary evils. Companies looking to reduce overheads costs often look to outsourcing options as a means to fit their needs at better costs. Yet the full scope of outsourcing, from its weaknesses to its potential is rarely understood.

August

Russian gov't to support country's outsourcing efforts

  Leonid Reiman, the Minister for Information Technologies and Communications (MinInformSvyazi) announced a new governmental initiative to support Russian software outsourcing companies.

Outsourcing moves towards multiple suppliers

  Many organisations are opting for multiple suppliers in outsourcing agreements instead of favouring a single service provider, new research suggests.

Expect Offshore IT Services Firms To Grow

  Indian companies in particular are investing in remote infrastructure management, onshore data centers, and tools to automate application development and maintenance processes.

Firms move away from single outsourcing supplier deals

  Companies outsourcing their IT and business processes are moving away from single-supplier deals and looking to spread their options, new research has revealed. Download more info

 Engineering Services Offshoring: Finally in the Limelight

  Cultural differences are one of the biggest reasons why offshore outsourcing deals fail or run into problems, according to new research.

July

Cultural differences cause offshoring problems

  Cultural differences are one of the biggest reasons why offshore outsourcing deals fail or run into problems, according to new research.

2006 Global Outsourcing Guide

  Risks, rewards, challenges and opportunities, country by country. More

Outsourcing market matures

  The outsourcing market continues to mature, as more first generation deals come up for renewal.

Study: Outsourcing Boom Is Over

  The outsourcing boom has passed and maturity is setting in, according to a new study from consulting firm DiamondCluster International in Chicago. Dowload

How to Avoid Intellectual Property Theft

  It is within your power to determine whether your enterprise will be a hard target or soft target for IP theft. The time for action is now. Here are recommendations for a comprehensive program.

Western Europe's top 100 outsourcing deals hit $40bn

  The total value of the top 100 western European outsourcing deals reached $40.5bn in 2005. This compares with $42.1bn in 2004.

June

Outsourcing growing in flexibility

  Once upon a time, if someone mentioned business process outsourcing (BPO), one would automatically think of India.

Dutch agency expands RP program to promote BPO

  The Center for the Promotion of Imports from Developing Countries (CBI) of the Netherlands is expanding its program in the Philippines to further enhance the competitiveness of its business processing outsourcing industry as an international supplier of BPO services in the European market.

Offshore to Sri Lanka: Finding Sri Lanka’s off shoring niche launched this week

  An in-depth report on taking the advantage of the potential benefits of the newly established global trade services, branding as an off-shore destination of choice for international visitors and government policy measures will be launched this week.

Contract flaws increase offshore outsourcing risk

  Businesses are increasing the risk of offshore outsourcing disaster by failing to draw up tighter contracts when dealing with overseas service providers, according to analyst Gartner.

Unison condemns offshore medical transcription

  NHS trusts that outsource the transcription of medical notes to South Africa, the Philippines and India received a sharp rebuke from health union, Unison.

Outsourcing: The Russian Revelation

  When Daniel Marovitz sought an offshore partner, he scanned the globe. "We talked about Canada, Ireland and low-cost locations in the United Kingdom. But it really came down to India and Russia," said Marovitz, chief technology officer for global banking at Deutsche Bank's investment banking unit, in London.

Russia Navigates a Bumpy Road to Outsourcing Future

  Opinion: The Russian outsourcing industry, though small, is gaining maturity and shows promise.

Philippine government unveils new outsourcing plan

  The Philippine government plans to implement "overseas global outsourcing" -- a new marketing strategy that will tap Filipino managers based in the United States to convince American companies to outsource their back office needs here in exchange for financial incentives.

 In Depth: When Outsourcing Goes Bad

  Lawsuits, recriminations, millions squandered on failed projects--and outsourcing is supposed to be a good thing for businesses?

IT outsourcing 'no longer key industry growth area'

  Revenue from IT services reached $624.4 billion (£336.8 billion) in 2005 after a six per cent increase from 2004.

Offshore outsourcing upstarts bite at India's heels

  India may be the best known destination for offshore contact centres but 'nearshore' countries such as Egypt also want to get a piece of the action.

Datamonitor: Is Africa the new India for contact center outsourcing?

  Africa is becoming a hot spot as a business process outsourcing (BPO) destination, fueled in part by western investments and regional efforts by governments and private sector firms.

May

Offshoring to Romania: the right skills at the right price

  Countries in Central and Eastern Europe will become the favorite locations of Western European companies for the migration of some services, according to an Economist Intelligence Unit (EIU) study.

UK firms start to shun offshoring

  IT offshoring is an unpopular option for the vast majority of UK firms.

Assessing Geographic Risk in Global Outsourcing

  Probability is nothing but common sense reduced to calculation." Pierre Simon Laplace (Théorie Analytique des Probabilités, 1812)

China wants Indian outsourcing crumbs

  When there is a spillover effect of IT outsourcing from India, which is the country most likely to receive business?

India cracks down on offshoring data security

  India is creating a new regulatory body to improve the level of security for the country's offshore IT services and business process outsourcing (BPO) companies.

The Seven Deadly Sins of Outsourcing

  Outsourcing is a source of stress, struggle and angst for many IT managers, and no wonder: More than half of outsourcing agreements end up prematurely terminated, according to a study.

Outsourcing Survey 2006, Part 2: Why, Where, and Who

  We explore why organizations choose to outsource, where they move it, their use of multiple vendors, and success factors in choosing a service provider

April

International Investment Conference on ICT for West and Central Africa

  24-26 October 2006, Bamako, Mali

Southeastern Europe pitches for outsourcing

  neoIT, which advices on outsourcing issues, has issued a new white paper on the state of readiness of the Southeastern European (SEE) region.

UK firms to drive offshore outsourcing boom

  Demand for offshore outsourcing services among UK and European companies is set to increase by 50 per cent per year over the next two years, according to Gartner.

Good practice note on data protection in outsourcing

  This good practice note sets out what you need to do to comply with the Data Protection Act 1998 when you outsource the processing of personal information.

How to avoid an outsourcing disaster

  Good governance - and leave the techies out of it too?

Microsoft's Gates Sees Vietnam Outsourcing Potential

  Microsoft Corp. Chairman Bill Gates said Vietnam has the potential to develop as an outsourcing center similar to India, during the first visit by the world's richest person to the Southeast Asian nation.

Outsourcing Survey 2006, Part 1: What, How Much, and How Long

  We explore what IT is outsourcing, how much it costs, and the length of outsourcing contracts.