Weighing Outsourcing's Impact
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Key factors help determine if outsourcing benefits or hurts Americans.
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There's a new calculation taking hold in corporate suites: Identify a company's core competencies. Outsource everything else.
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Outsourcing is seen as an increasing problem and UK firms should not move more jobs abroad, a survey finds.
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Cheap labor isn't the only reason for offshoring.
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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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Australia's IT News reports the findings of a recent survey in which more than 20 percent of company execs said they were considering or recommending offshore outsourcing. [Outsourcing Blog]
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After internal documents revealed plans to send nearly 5,000 jobs to developing countries over two years, IBM became an easy target for critics of outsourcing. Will limiting layoffs take the sting out of moving these jobs abroad?
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In a new wave of global outsourcing, personal chores are moving offshore, and this is leading to some daunting challenges, both economic and cultural.
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Practical tools for assessing who is worth doing business with--and who isn't.
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High stress and low status have soured many grads on the telephone work. Now India, the outsourcing capital, finds itself having to outsource
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The Government Accountability Office (what you and I remember as the General Accounting Office) last week issued a long-awaited report (which was supposed to be out last spring) on the nettlesome issue of offshoring/outsourcing.
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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.
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While media and political attention is on the threat of outsourcing, the reality is that outsourcing is a sideshow in a much larger event.
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Outsourcing has yet to really penetrate the travel industry. Local needs and travel infrastructure tends to require local people on the ground.
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The rise of the Indian rupee against the U.S. dollar is affecting Indian outsourcers.
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So Iâve finally finished the tough slog through The World Is Flat, Thomas Friedmanâs much-cited opus on globalization. One could take issue with the 577-page bookâs uneconomical approach to language, but itâs hard to dismiss its basic economic premise: The playing field is leveling out, as India, China, and other emerging markets plug in to a global economy. Outsourcing is a fact of life.
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(InfoWorld) - Indian outsourcing companies have to move beyond low-cost services on an hourly-rate basis to offering complete services, according to an outsourcing consultancy. A model that is based primarily on the low cost of Indian staff will not be sustainable by Indian providers in the long term, as the cost advantage is eroding, said Dennis McGuire, chairman of outsourcing consultancy firm, Technology Partners InternationalÂ (TPI) in Houston, Texas. Large competitors like IBM and Accenture are also expanding operations in India to take advantage of low-cost staff, he said. âWhen I go to a restaurant, I want a chicken dish and not a rate-card telling me how much the chefâs time will cost me,â McGuire told reporters Wednesday. There isnât much risk, nor promise of great reward, in the current labor-cost arbitrage model adopted by Indian providers, he said. Indian service providers must make more investments in senior staff, and industry specific applications and tools if they want to win big contracts, said Peter Allan, a partner at TPI. They will have to develop industry-specific applications, such as a billing system for telecommunications companies, around which they can offer services to customers, said Siddharth Pai, another partner at TPI. Indian providers have been reluctant to trade current margins for long-term revenue opportunities because investors expect far higher margins from Indian service companies than from their multinational competitors, TPI said. Only recently have these outsourcers indicated that they are willing to accept total outsourcing deals that involve transferring customer staff and assets, Pai said. The reluctance of Indian outsourcers to address the lower-revenue domestic outsourcing business will also hurt them as the market shifts from plain coding and testing to higher-end transformation services, research firm Gartner said this week. Working on projects in India in these new areas would give Indian outsourcing companies the opportunity to prove their capabilities to customers abroad, said Partha Iyengar, research vice president at Gartner. Indian outsourcing companies such as Infosys Technologies and Tata Consultancy Services are attempting to go up the value chain into IT consulting and services delivered around their products. â They still donât offer the full array of services, and in applications they only have products in the core banking area,â Pai said. However,Â business is still strong for Indian outsourcers, according to data released by TPI. Of the number of contracts greater than $50 million awarded last year, the share of Indian service providers went up to 11 percent from 8 percent a year earlier, according to the consultancy. Their share of the total value of these contracts went up to 7 percent from 4 percent a year earlier, it said.