Planet Outsourcing

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

Adaptive outsourcing model has been announced by Keane which is one of the leading IT services firm. Adaptive outsourcing model offers all the advantages of traditional outsourcing coupled with flexible delivery models aimed at matching technology adoption cycles. It is expected to ensure clients to react in a swift manner to dynamic business opportunities and hence bring down the costs of their operations and bring further cost savings for funding strategic initiatives.

Gartner has to say something on this:

They introduced the concept of disciplined multisourcing in response to widespread dissatisfaction and the outright failure of outsourcing deals. Keane’s Adaptive Outsourcing approach is designed to alleviate the source of much dissatisfaction at the core of the traditional client-vendor relationship.

This approach is very much similar to the concept of Gartner of disciplined multi sourcing and Forrester’s adaptive sourcing. Keane’s concept is expected to lessen the level of dissatisfaction at traditional client vendor relationship.

Via sys-con

Banks in India don’t seem to be happy with the idea of outsourcing and hence have requested their Prime Minister to stop outsourcing in this arena and resume large scale recruitment in the public sector banks since outsourcing is affecting jobs in this particular sector. The banks are expected to go on a three day strike commencing from March 28th in protest.

Banks state that due to outsourcing their workload has increased a lot since banks have banned recruitment which has left around one lac positions vacant and they are being forced to work overtime as a result.

It seems Indian banks are not happy with the idea of outsourcing and they feel that it is having a negative effect on their cadre and hence want outsourcing to be stopped. Probably Indian banks employees don’t seem to be happy with this outsourcing trend in the banking sector.

Via financial express

South Africa wants to establish itself in the arena of global outsourcing and in order to make that possible the Department of Trade and Industry of South Africa has launched an incentive programme for BPOs. The programme is called Government Assistance and Support Programme and is aimed at handling incidents of red tape causing suffering for both the existing and new BPO players in the country.

The programme is meant to ensure easy entry in the country for BPO players, marketing, simple administrative procedures, skill development and other investment incentives. The programme would also be targeting marketing aimed at identification of high impact foreign investors for spurring the interest of investors.

This step is expected to go a long way in achieving the government’s goal of reduction of unemployment by half in 2014 and it is expected that this sector would lead to the creation of 1,00,000 direct and indirect jobs by 2009. It seems that the South African government is surely making whole hearted effort for bringing its country on the global map of outsourcing.

Via businessafrica

The International Association of Outsourcing Professionals or IAOP has announced the list of companies finding a place in the coveted list of 2007’s best outsourcing service providers - The Global Outsourcing 100. This list has names from across the globe indulging in a wide range of outsourcing services. This list includes companies which are not only established players but also names which are trying to make a mark in the outsourcing arena. These names will be also be featured in the Fortune 500 issue of 2007.

The following criteria were used for selecting the companies:

# Size and growth in revenue, employees, centers, and countries served.

# Customer experience as demonstrated through the value being created at the company’s top customers.

# Depth and breadth of competencies as demonstrated through industry recognition, relevant certifications, and investment in the development of people, processes, and technologies.

# Management capabilities as reflected in the experience and accomplishments of the business’s top leaders and its investment in management systems that ensures outsourcing success.

Indian companies such as Infosys, TCS, HCL Technologies, Patni, Satyam and Wipro Technologies have found a place in this list and this surely portrays the dominance of Indian outsourcing companies in the outsourcing arena. For the complete list click here.

Via globaloutsourcing100