Planet Outsourcing

It is expected that the offshore tech spending by banks is expected to increase from the level of six percent to thirty percent by 2010. It is also expected that the banks in U.S and other countries would be increasing their budget for getting hold of technology services from offshore providers which operate from countries such as China and India in the coming years.

As per a study by Deloitte:

Among larger institutions in particular, offshoring is not one available cost-cutting strategy, it’s become a basic necessity. Banks are moving well beyond outsourcing low-level application maintenance work and are increasingly relying on offshore service providers for help with more sophisticated technology projects.

Though the advantages offered are quite a lot but a number of banks are not banking on it and it would be better if they develop the internal management skills required for making offshoring as much cost efficient as possible.

Via itnews

Private management of parking meters is causing a lot of financial waste to the Washington state. Outsourcing has not been able to achieve its objective and has brought up the costs to $9 million from 1999 to 2005. The problem was caused due to the poor service offered by the contractor hired for the purpose.

In 1993 when the parking meter service had not been privatized the city raked in $13.2 million in revenue as against $1.1 million in expenses with returns of $11 for every dollar spent. The only profitable year under privatization was 2003 when around $2.63 were earned for each dollar spent.

The figures demonstrate that the government was far better off when it had not outsourced the service and this demonstrates that outsourcing cannot be a good option every time and cannot be implemented everywhere.

Via washingtonpost

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 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

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

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

Philippines is catching up with India in the outsourcing arena and since it has a vast pool of English speaking population along with a cultural affinity with United States. This has enabled Philippines to emerge as the second strongest contender in the field of outsourcing just after India. Some time ago the country was facing difficult in selling itself as an outsourcing destination but now it does not need any introduction.

Now a number of clients are flocking Philippines to set up their business. Even a number of Indian firms are moving some of their operations to Philippines. A number of companies from Unites States have already set up their shops in Philippines.

The President of India’s software and service industry group, Kiran Karnik stated that for some businesses Philippines was a good choice since it had strong cultural ties with U.S. Is India losing out on its business to Philippines? It seems so and it needs to figure out why this shift is happening and the steps it should take to prevent out on losing its business before it’s too late.

Via zeenews

UK has seen a significant jump in the number of product recalls and this is being linked to outsourcing to developing countries. Experts say that since most of the manufacturing is being outsourced to China and other nations it is becoming quite difficult to maintain control over quality.

The trade associations of US and Europe have taken a serious note of this issue and they are condemning the regulatory authorities for poorly regulating the foreign active pharmaceutical ingredient manufacturers. The pharma industry has taken the biggest hit in this regard.

As a result the credibility of the companies are taking the toll and with the market being highly completive they risk losing their customers and even their brand image could be hit badly. I believe the outsourcing companies should pull up their socks or risk losing their business as no company would like to sell products which start affecting their markets.

Via drugresearcher

The trend is changing in the field of outsourcing. The time of mega deals seems to have ended and they are being replaced by smaller deals. The reason being attributed is that the outsourcing market has matured. The verdict is that mega deals seem to have taken a hit and now smaller deals are in vogue having duration of around two years now.

This does not mean that outsourcing is losing its charm but now companies are less committed to enter into long term deals. The new mantra in the outsourcing industry is flexibility. Probably outsourcing has taken a blow on the issues of security and data privacy and this could be one of the reasons that companies are now less committed for mega deals. Let’s hope that the outsourcing industry strengthens itself in the areas mentioned above and reverses this trend.

Via playfuls

The construction industry is suffering at the hands of outsourcing as engineering jobs are getting outsourced. Important construction jobs overseas are being outsourced since it is cheaper to get engineering projects in China which is causing trouble for a lot of companies.

A lot of efforts would be required by property managers, building owners and contractors to find out why the particular industry is suffering. Companies are looking forward to sacrifice their highly skilled workers in order to save on money by contracting out to smaller firms.

Though it might not lead to shortage of labor but it is surely expected to cause productivity problems for sure since nowadays everybody is looking for cheaper and better work but at the end of the day the construction industry will bear the brunt.

Via businessledger