Offshore Outsourcingâs Next Wave: How High?
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Just how much back-office work can be sent abroad, and how quickly, is a matter of some debate. But everyone thinks it will grow explosively as earlier waves of outsourcing did.
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Wages in India have risen to the point that offshoring development operations no longer makes sense for one high-tech company.
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SEPTEMBER 27, 2004  - A new government report indicates that offshore outsourcing could hurt IT employment growth over the next decade.
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In Meta Group study, nearly half of managers surveyed predict offshore outsourcing will decline if Kerry elected.
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It may now be the turn of Indian companies to offshore outside India their IT services requirements.
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Cast your net offshore if you want to expand your investing horizons.
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IBM said Wednesday that it has sewn up outsourcing deals with two Danish companies valued at more than $1 billion over 10 years, reinforcing its strength in Europe.ADVERTISEMENTWhite Paper: Converged Services Spell ReliefDiscover why technical decision makers are turning to IP telephony and VPNs to increase worker productivity while keeping an eye on the bottom line.
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Accounts for half of global deals Demand for outsourcing in Europe has increased dramatically in the first half of 2007, compared with the same period last year, according to the latest Quarterly Index from labour sourcing advisers TPI.â¦
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Indiaâs outsourcing industry continues to do well despite theÂ appreciation of the Indian rupeeÂ against the U.S. dollar and higher staff costs.
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The human resources department is so 20th century. Recruitment has become the next outsourcing frontier. Think India.
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BANGALORE, INDIA -- The purely offshore outsourcing model is out of favor, and Indian business process outsourcing (BPO) companies are finding that they need U.S. facilities and staff to run operations for their American clients.
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Indian outsourcers already have a large share of outsourced application development and maintenance and are dominant in business process outsourcing. The country is now targeting a larger share of the market for remote infrastructure management services (IMS), and is planning to more than double revenue from these services to $15 billion by 2013.
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Offshore outsourcing&#39;s reigning champion, India, squares off against its upstart rival, China, on software quality, staff costs, advanced business skills and more. We also figure in a few top of mind questions for the IT manager who&#39;ll be traveling to his company&#39;s offshore provider once a quarter: Can I get a decent cup of coffee, and how long will I actually be on the plane?
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Close on the heels of the&#160;appreciation of the Indian rupee against the dollar, Indian outsourcing companies are grappling with a new problem -- uncertainty among U.S. companies about a recession has made these companies delay finalizing their IT budgets.As a result many large deals between U.S. clients and Indian outsourcers will not be finalized in the first half of this year, said Sudin Apte, senior analyst and country head for India at Forrester Research.Business will however pick up for Indian outsourcers by the fourth quarter, particularly if the U.S. economy is in mild recession, Apte said.&quot;Our experience is that if the IT budgets of U.S. customers are marginally impacted in a recession, then there is an increase in business offshore, to cut costs,&quot; Apte said. If the cuts are too large, whole projects can however get canned, he warned.The U.S. is the largest market for Indian outsourcers.&quot;We believe that the recessionary nature of today&#39;s economic climate will promote the adoption of increased outsourcing,&quot; said Siddharth Pai, a partner at outsourcing consultancy firm, Technology Partners International Inc. (TPI) in Houston, Texas.TPI does not as yet see a cut in either discretionary or non-discretionary spending on IT by companies.Forrester said Monday that the IT services and outsourcing market will increase by 4 percent this year to $162 billion from a growth rate of 6 percent a year earlier.&#160;The research firm forecast slowing growth this year&#160;for purchases of IT products and services in the U.S.National Association of Software and Service Companies (Nasscom), a trade organization in Delhi, however remains optimistic about the growth of India&#39;s outsourcing industry. The industry is optimistic of achieving its target of $60 billion in software and services exports by March, 2010, the association said Monday.In the fiscal year to March 31, the industry expects export revenues of $40.3 billion, up by 29 percent from export revenue in the previous year.Problems for India&#39;s outsourcing industry could get however compounded as its customers abroad have seen a drop in overall satisfaction and a drop in value for money from offshore outsourcing to India, according to a Forrester survey. India is still preferred as an offshore destination because it is the only country where foreign companies can&#160;hire staff in the thousands, Apte said.
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BusinessWeek Online - Many people fear that the availability of cheap global labor in our increasingly integrated world economy -- or "globalization," -- is prompting companies to relocate production abroad. Yet a recent study by the European Commission (EC) suggests that high labor costs aren't so much the problem as the European Union's failure to cope with increased international competition and an accelerated speed of technological change.
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Decision Design is expanding in California, touting a cheap "homeshoring" alternative to offshore outsourcing.
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Investor's Business Daily - A mix of low-cost labor and high-quality software and services has proved a bonanza for outsourcing firms in India, sending American rivals IBM  , Accenture   and others scrambling to cash in.