Planet Outsourcing

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

Asia is getting competition from South America in the arena of IT outsourcing. It is expected that Brazil would give a tough fight in IT outsourcing arena and remove its label of being a hub for automotive components. A latest report from Frost & Sullivan states that the IT infrastructure outsourcing market of Brazil will register a stupendous growth in the years to come. By 2012 the IT outsourcing industry of Brazil will garner revenues worth $3.3 billion. All this will be possible as a result of introduction of open communication networks coupled with opportunity for managing a number of networks remotely.

In the future IT outsourcers would have to fight for contracts as rising competition has increased the number of players in this arena with diversified portfolios. Now IT infrastructure outsourcing providers are in search of complete end-to-end outsourcing contracts in order to overcome price deflation in the market. Countries such as India and Philippines would surely have a tough time fighting Brazil in this arena.

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Via ihotdesk

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 period, the number of fatal crashes for every 10 million flights dropped from 6 to 2.

It is being said that the maintenance related safety record of the U.S airline industry is the best which has been seen and we can safely conclude that outsourcing can be really beneficial for companies.

Via canadianbusiness

Up till now big Indian companies were major attraction for outsourcing but now smaller cities such as Vizag and Kochi are emerging as the next hot destinations for outsourcing. Some of the cities which have the potential to emerge as BPO hotspots are Hyderabad, Ahmedabad, Chennai, Kolkata, Kochi, Thiruvananthapuram, Pune, Visakhapatnam and Nagpur. What serves as major attraction for these cities are accessibility, population, education and companies who are already operating in these countries.

One of the main reasons behind this is the cost factor since bigger cities involve heavy expenses as compare to smaller cities and are more congested. The infrastructure costs are pretty low and even labor is available as lesser prices as compared to cities.

Same quality at half the cost is the reason why companies are shifting to smaller cities in India since outsourcing is more about saving costs.

Via domain-b

India is a favored outsourcing destination and a number of companies are looking forward to set up a base in this country. In order to make its presence further felt in this country IBM is eyeing acquisitions out here and therefore is looking forward for bigger IT outsourcing deals in the country.

The company is regarding India as an important part of its business strategy and therefore is looking forward to move further depending upon the businesses in the domestic market. The company is looking for more deals in the country even after having garnered multi million dollar deals from Indian telecom companies.

The share in revenues from India for IBM has crossed thirty seven percent by 2006 and the employee strength too has been doubled. IBM is planning to invest $6 billion by 2009 and this shows the commitment of the company towards the outsourcing sector of this company.

Via forbes

You may not believe that around fifty countries are keeping a watch on success of India in the outsourcing arena and that too with the purpose of snatching a piece of its share. From Bangladesh to Canada, countries worldwide are waiting to duplicate the success of India using their manpower.

Partha Iyengar of Gartner stated:

India has been a great avenue for job creation in the past few years, and that too with very little fixed capital investment. This success has not gone unnoticed around the world, especially among the countries which also have their people as their greatest asset.

Countries are getting desperate to study the off shore phenomenon in India. As per Iyengar in order to replicate the success a mixture of six ingredients would be needed like government support, a large resource pool of graduates, training ecosystem, strong vendor base, process and quality capability and English language proficiency and as of now none of these countries can manage these all therefore there is no need for India to bother about it as even if these countries try it would take a long time for them to reach close enough to India.

Via indianexpress

Indian pharmaceuticals have traveled a long distance and from being an industry manufacturing generic drugs they have now started their own research and development programs and are expanding their operations for offering discovering services too. A number of companies such as Connexios, Advinus Therapeutics and GVK are already offering preclinical contract services in India.

Indian companies are putting huge stakes on pharma outsourcing for their growth and as per an estimate the global pharmaceutical outsourcing stands at around $35 billion. Asia is looking to slice a bigger pie in the global pharma outsourcing market.

In 2005 the Indian pharma industry garnered a growth of 2005 and by 2010 it is expected that the Indian biotech sector would reach $ 5 billion. It seems that the Indian pharmaceutical industry would surely dominate the outsourcing world in the years to come.

Via indiastockmarket

If you have a good command over English then you have a chance of landing up a job from a newspaper based in U.S. A number of companies based in U.S are now looking forward to outsource some of their editing jobs to India and other developing countries. Already India has seen certain kinds of business reporting and data entry jobs being outsourced to it.

With content outsourcing industry billed at $2.5 billion per year it is expected that India would be achieve a turnover of ten billion rupees. Even the recent industry analysis has pointed out that the newspaper industry of developed countries is looking forward to outsource some of them core and non core functions to developing countries such as India due to cost factors.

Though this has started to take place but I don’t think that American readers might be comfortable with the concept of Indians editing their newspapers. Surely the acceptance will be difficult at first but probably they too would have to bow to the cost pressures being faced by the U.S newspapers.

Via rediff

Up till now the Nordic countries were slow in adopting outsourcing when compared to the Europeans but this trend seems to be changing and one of the latest examples is Sweden. The country is betting on technology, communication, biotech and life sciences and is looking to collaborate with India due to attractiveness of its markets. As per the Swedish Trade Council, on an average a single company is getting registered in India and many more companies are looking forward to establish links with the country.

Sweden is being attracted to India due to the scalability option, cost competitiveness and skilled labor. Even though there are number of IT companies such as Deloitte, EDS and IBM which have presence in the country but still it is being attracted to low cost countries such as India.

It seems that the magic of India is catching up with Nordic countries too and this will help it in maintaining its lead in the outsourcing arena for a long time to come.

Via globalservicesmedia

Outsourcing companies may be offering a way of life to number of jobless people but Alan Garcia, president of Peru does not think so. He feels that the outsourcing companies were abusing the labor policies in the country. He has begun a grand campaign for putting to halt intermediary abuse in the country.

He stated that the companies were benefiting at the cost of poor workers who were being paid low and were being forced to work more without being able to voice their opinion. He further stated that he had not kept his campaign promise in the box and was waiting for the right time to fight these companies.

He even said that a number of employees contracted by the outsourcing companies did not figure out on the payrolls of the company and hence were not even eligible for the bi-annual bonuses. Already the Public Ministry of Peru has announced that three hundred employment agencies had been ordered to be closed down in order to prevent exploitation of workers.

It seems the president is acting tough and is sticking to his promise of bringing the outsourcing companies in line. Good luck president!!

Via livinginperu