Planet Outsourcing

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

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

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

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

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

Nigeria, an African country is looking forward to get hold of some share in the outsourcing arena and is working to create a platform for itself which would let then earn revenues worth $10 billion yearly from IT BPO sector. There is a very possibility that this sector would thrive in Nigeria and would help in the development of non oil sector of their economy.

Since Paris had a lot of skilled human capital in IT and Internet Service knowledge it would surely be able to deliver quality service and the launch is happening at the right time since it could help in development of entrepreneurial talent in the country and even attract foreign investment.

The country has a lot to offer in terms of English language knowledge, cultural fit and savings for the customers too. It seems Nigeria has a bright future ahead.

Via vanguardngr

As per a latest report it is expected that the European spending on outsourced logistics services in the pharma industry would exceed the mark of $2 billion by 2011 as it would result in growing opportunities for 3PL providers. The research conducted by Analytiqa states that logistics spending in Western European markets would grow by more than twenty percent and Spain is expected to emerge as a leader in this game.

Though the European pharma chain is highly regulated and complex but logistic services outsourcing is still in its infancy in Europe and it is expected that it would offer expansion opportunities for service providers.

Since European pharma supply chain outsourcing is underdeveloped as compared to that of U.S. , third party logistics provider have a great chance of staying ahead in the race if they are able to adapt their offering with the changing demand.

Via outsourcing-pharma