Tag Archives: outsourcing

SME IT outsourcing witnessing growth

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A number of small to medium sized businesses are looking to outsource their IT management processes in the future and it is expected that the integration of IT support in to SMEs would become a high growth area for IT outsourcers over a period of next five years. Companies looking to offer IT support services would have to adapt their business models for meeting the expected influx of SMEs requiring outsourcing services. It is expected that private contractors would increase the implementation and support of IT management processes. Andrew Parker, V.P, Forrester stated: We’ll see stable operations farmed out to third parties, new IP sourced from open communities and solution brokers, emerging technologies going to market wrapped in process bundles and new software investments based on subscription rather than ownership. Improved cost savings and greater efficiency is the reason behind SMEs turning to IT outsourcers besides offering expertise that professional IT support firms can offer. Via ihotdesk

Indian outsourcing industry targeting a bigger pie in aerospace outsourcing

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There is some more encouraging news for the Indian outsourcing industry. Indian software companies have stated that they are in a very good position to get a bigger share in the aerospace market as aero plane manufacturers are looking forward to controlling their costs since competition is hotting up. Aerospace accounts for eight percent of the market and this figure is expected to reach $1.1 trillion by 2020. M Ashok Kumar, Exec V.P, HCL states: Aerospace as a vertical is being focused more than the others, especially by companies like ours whose core strength lies in engineering. If we look at the current scenario then aerospace outsourcing has a very bright future and some say that in this sector sky is the limit. Indian outsourcing companies have been offering a number of services such as on-board electronics systems development, air traffic management, engine control and aircraft design. With the Indian offset policy requiring foreign airplane companies to spend a percentage of their Indian orders on buying services from local Indian companies the Indian outsourcing companies are expected to get a further boost. Via economictimes

Has security outsourcing finally arrived?

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This is one of the biggest questions on everybody’s lips – Has security outsourcing really arrived? Some of the big names in the outsourcing industry are claiming that it has arrived and they are supporting these claims with people, money and research. A recent study conducted by CompTIA states that security will be one of the major drivers in the managed services market and firewall and security are the two services which are among the top managed services which have been employed by various organizations. Richard Rysiewicz, V.P, CompTIA stated: While there’s still some skepticism out there — security was also cited as one of the top three factors keeping companies from engaging a managed service provider — there are some providers that have reached a kind of ‘trusted advisor’ status, and they are being engaged more and more frequently to deliver security services. It is expected that companies are going to entrust their security to third parties but it needs to be seen whether these security outsourcing companies will be able to stand the test of times or not since security is a sensitive issue and any mistake can have serious repercussions. Via darkreading

Outsourcing of airplane repairs defended by Federal Aviation Administration

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U.S airlines are increasing their dependence on outsourced and overseas plane maintenance shops and this resulted in a lot of criticism but this action of airlines received support from the aviation regulators and they stated that due to this there had been a decline in the number of airplane crashes. Though outsourcing has increased over a period of time but it has brought down the rate of accidents. Now airlines don’t have to bother themselves for aviation safety since there are outsourced companies to do that job. As per FAA statistics: Major carriers’ maintenance costs performed by outside companies have risen from 38 percent a decade ago to 64 percent in the first three quarters of last year, according to the inspector general’s report. Over the same

Dental tourists flocking India for cheaper treatments

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Did you know that outsourcing was taking place in the arena of clinical dentistry too? India has been witnessing a steady influx of medical tourists from countries such as U.S, U.K and Gulf who are clubbing their holidays along with dental treatment since the cost of the high end dental care is pretty low as compared to other Asian countries such as Thailand, Indonesia or Singapore. This is expected to generate employment for around a million people by the year 2012 and since India offers dental treatments at just one seventh of the costs of the developed nations, the medical tourism in India is expected to see around two billion people visit India by 2012. This will also lead to opportunities for other fields such as Health Insurance, Medical Value Travel, Medical Infrastructure, Medical Textiles and Training and Education too. It is expected to contribute by around 6.05% to the GDP. With its world class facilities India is expected to become a global healthcare hub and earn a good name in the field of international medicine too. Via cybernoon

Have you tried maid outsourcing services?

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Medical care not satisfied with the work of your domestic maid? If the answer is yes then you can opt for a foreign maid. Outsourcing of maid services is emerging as a viable option for people who can pay more in Malaysia. There are some families who are against this idea since they would have to give one of their rooms to the maid for living. They would rather prefer those foreign maids which can clean their houses and return back to their respective hostels. Indonesian maids are now getting lesser importance in Malaysia and people are preferring helping hands from other countries and the reason for this shift is still unknown. There are more than two hundred foreign worker services outsourcing companies registered in Malaysia which have already brought in around thirty thousand workers for the plantation, manufacturing, agriculture, construction and services sector. So, if you have enough money then you could opt for a foreign maid and if you are wondering why this is so then let me clear your fundamentals that outsourcing does not always mean cost savings which is the general notion. Via: bernama

Outsourcing brings China and Japan closer

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Wen Jibao plans to visit Japan on a relation mending mission and this is also expected to give a further push to the already rising software outsourcing trade between the two countries. China has been handling more than sixty percent outsourcing business of Japan and since 2006 has become the biggest software outsourcing base for them. China has generated revenues worth $ 1.43 billion in 2006 and Japan was responsible for more than half of the revenues. Big Japanese names such as Mitsubishi, Hitachi, NEC and Sony are already utilizing the outsourcing services of China. Japanese have preferred China over India for outsourcing since it is geographically closer and have a cultural background which matches to that of China. The visit of Chinese premier is being seen as a confidence building measure so that more Japanese are willing to establish business links with China and end the animosity which had prevailed over the past. It now looks that outsourcing will bring the two nations closer which up till now had not been getting along politically. Via people

Outsource your packaging to reduce gestation time for product launch

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Outsource your packaging and you are all set to bring down the time for introducing new products in the market. Catch hold of packaging contractors as they have the necessary resources for meeting the needs of the company and they can install the equipments quicker as compared to the pharma companies whereas in the case of companies the gestation period for a number of companies could be as high as one year. If you can outsource your packaging then you can even free your resources and utilize them for more profitable activities. This trend seems to be on the rise and some of the packaging work is being outsourced to countries such as China and India even though pharma companies look for specialist outsourcing partners for their work. The general requirement for most of the companies looking for a packaging partner is cost, control, confidentiality and capacity. Pharma companies certainly stand to gain from it as it helps them to concentrate on their core competencies. Via in-pharmatechnologist

India emerging as a frontrunner in online tutoring service

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Outsourcing has invaded the education sector too. India is emerging as a front runner in offering tutoring services to overseas clients and is expected to garner a large share in the online tutoring business. Already a big business in Europe, U.S and East Asia, online tutoring is expected to grow rapidly in the years to come. It is said that online tutoring is an expensive service which is generally within the reach of rich families but outsourcing is expected to change this trend. Since the service offered by Indian teachers is available at fraction of the cost charged by U.S and European teachers, outsourcing is expected to bring down the cost of online tutoring by $20 per hour. India is again expected to gain from online tutoring outsourcing since besides the cost factor it has a large pool of English speaking talent with high level of competency in related subjects. Even the internet penetration and connectivity has improved over the years and this is expected to make India a leader in this particular field. Via atimes

Outsourcing Industry Predictions for 2007 by Luxoft

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You must be knowing about Luxoft, a Russian company which offers IT outsourcing services to a host of companies such as Dell, IBM, T-Mobile to name a few and now it has come up with a prediction for the IT outsourcing industry for the year 2007. This is a well covered prediction which includes a range of business, technical and relationship pulse points and states that the global IT outsourcing market has matured to quite an extent. Some of the predictions for the year 2007 for the outsourcing industry are: Value Becomes King Over Pure Cost Outsourcing Gets More Agile Hybrid Models Become the Norm Security Bar Is Raised – In 2007 Player Consolidation Continues Nearshoring Comes Closer Financial Industry Increasingly Banks on Outsourcing This is a very good prediction and some of the predictions are expected to turn out to be true. Click her to read the whole prediction.