Opportunities increasing for data-center outsourcing

Posted on January 24, 2012 by admin

With the demand for data center space rising like anything it is expected that the demand would continue to surge at a rate of fifteen percent per year. Its growth is being compared to that of the energy sector. Companies offering data center space have a golden opportunity in their hands as the industry has garnered revenue worth $15 billion last year and this year figures are expected to be much higher. The advantage of opting for data center outsourcing is that it offers companies a greener way of conducting business. Though it offers numerous benefits but people need to approach it with a lot of care and must consider the quality factors, cost and optimization factors before traveling the outsourcing route. Appropriate research needs to be carried in this regard and exercise restrain in handling over business critical data to third party. Also check that you are not charged unnecessarily since supply is less and demand is more in this sector. If you act with a bit of restraint and brains then your company can surely benefit from it. image Via infoworld

Offshore outsourcing cost benefits to dry up by 2027, says A.T. Kearney study

Posted on January 23, 2012 by admin

As per a latest study it is being claimed that the outsourcing advantages offered by India and China are going to vanish in the next two decades owing to increasing salaries and other costs in these countries. The study which was conducted by A.T. Kearney states that inflation is eating into the benefits being offered and over a period of time these advantages would dry up. Average salaries for programmers in China, India and Eastern Europe have shot up between twenty to forty percent in the year 2006 as compared to a modest increase of five to ten percent in U.S. It has now become necessary that companies making global location decisions should target short term considerations and more on long term projections of talent supply and operating conditions. It now looks that this message might be lost in the whole process. Via informationweek

Deutsche Bank has a number of countries under its outsourcing umbrella

Posted on January 23, 2012 by admin

Deutsche Bank does not stick to one country for outsourcing and it deploys the services of various countries for its outsourcing work. It has been outsourcing work to a number of sites around the world in order to gain from competitive advantage. This bank is now moving more towards Russia for outsourcing as compared to India since this country has a number of financial and psychological overheads. Commuting to India is tough and even the hotel prices have shot up. On the other hand traveling to Russia is easier and it is offering competitive pricing along with good command over English. Does this mean that India is losing prominence in the outsourcing arena? Not as of now but soon it may lose its crown since since the old perception about Russia is changing. Earlier Russia was thought of as a dangerous and difficult place to do business but now the perception seems to be changing and India might face some problems. First it was just China but now even Russia seems to be rising in this arena and now warning bells have surely started ringing for India. Via businessweek

India and US behind China in critical research outsourcing

Posted on January 23, 2012 by admin

As per a recent study it has been found out that India and U.S is sleeping whereas China seems to be cruising ahead in the arena of critical research and design outsourcing. The research states that India and US are way behind China in terms of performing basic research. Vivek Wadhwa, Executive, Residence at Duke University’s Pratt School of Engineering, who led the research stated: Outsourcing will continue and gain momentum, but this is not what we (US) have to worry the most about. What our new research highlights is that we’re fixing the wrong problems. The study further states that US cannot depend upon the foreigners since they would return back once the economy of their countries improve. Are both the countries listening? China would surely leave both India and US really behind. Via indiaenews

Media outsourcing receives criticism amongst journalist fraternity

Posted on January 23, 2012 by admin

Irish Independent, Evening Herald, Sunday Independent and Herald AM are some of the most respected newspapers of the world but rising costs are forcing them to follow the outsourcing route. This has irked the journalists and they have voted to reject this cost cutting arrangement. The newspaper had planned to outsource its sub editing work to a company set up by its two employees but now it may not become a reality. They feel that in the long run outsourcing would affect the quality of work being undertaken at the newspaper besides costing their jobs. Media outsourcing has not been as popular as IT outsourcing and it has been generating criticism around the globe. The media fraternity feels that it will lead to loss of quality work besides taking away their jobs. This may be true to some extent but newspapers are helpless and if they don’t opt for outsourcing they may face extinction as print media has been facing a lot of competition from electronic media of late. Via irishexaminer

Math tutors being outsourced from India

Posted on January 22, 2012 by admin

up till now India was known more for IT outsourcing but it’s all ready to make a mark in the world of education outsourcing too. Indians are said to be good at their mathematics skills and in order to tap these skills, Guilford County School is one of the schools in U.S which is connecting its students with mathematics tutor in India through Internet. The pilot test started in January with hundred students of middle school participating in it. The schools are taking the services of these math tutors for raising the math scores of their students. This tutoring program is expected to enable the students to have a one on one interaction with the math teacher and for every student lessons have been customized as per their requirement. The per student charge come to around $600 per student and students were invited to the program depending upon their previous mathematics score. Via myfoxwghp

Outsourcing is not affecting employment in Britain

Posted on January 22, 2012 by admin

Every time work has been outsourced from Britain to India it has called for a lot of hue and cry but a recent report comes as a shocker which states that work being outsourced to India is having no effect on the call centers in Britain and a million jobs would be generated by the year end. As per ContactBabel around three percent of the working population in Britain was working in call centers. With around 960,000 jobs in the sector the numbers will continue to increase in the months to come. Steve Morrell, of ContactBabel stated on this issue: The UK contact centre industry continues to grow at a healthy and sustainable rate, driven by the expansion of existing operations, rather than the opening of new contact centres. Outsourcing boom in countries such as Eastern Europe, South Africa and India have not affected work in U.K. Even some companies in U.K have withdrawn the outsourcing work and it is expected that around 1.1 million people would be employed in call centers in U.K by 2010. I was just wondering why such a hue and cry was raised every time work was outsourced to India. Was it all some political agenda? Seems so!! Via andhracafe

Infosys, TCS find a place in the Global Outsourcing 100

Posted on January 21, 2012 by admin

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

South Africa launches new programme for making a mark in the global outsourcing arena

Posted on January 21, 2012 by admin

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

China looking forward to farming outsourcing

Posted on January 21, 2012 by admin

For more than two thousand years China has been dependant on soyabeans for producing tofu which has become the staple diet of country. Now the country has started facing water problems and in order to meet its daily dose of tofu it is looking forward to Brazil to come to its rescue. Industrialization has diminished water supplies and cultivable land in the country therefore China is looking towards South America for its food needs where land is still available in plenty and is cheap. The figures talk for themselves as a fifty percent jump has been witnessed in soyabean trade between China and Brazil which stands at eleven million tons. China has been witnessing a drop in the water table at the rate of three to ten feet every year and let me tell you that a thousand tones of water is required for production of one ton of grain therefore the best thing for China is to import it. Now the situation is such that China is looking forward to get in direct contact with Brazilian farmers and they are even ready to improve facilities and upgrade the rail system in Brazil all for a regular supply of soyabean. Via medindia