Planet Outsourcing

Costs are rising in India and if it wants to stay competitive then it should move some of its operations to low cost countries if it would like to retain its outsourcing crown. It would be good for India if it could opt for back office operations in Eastern Europe or Mexico and it would also increase its proximity to its clients in U.S.

The past decade has seen India become a leader in the outsourcing sector with its revenues too spiraling. Big companies such as Infosys and TCS have already set up shops overseas in order to serve their major clients and the remaining outsourcing companies in India should also follow suit if they would also like to remain competitive.

Pradeep Udhas, global partner, KPMG:

The model I see emerging is... India will be a hub of outsourcing and the spokes could be in China, Malaysia, Europe, Brazil or Sri Lanka.

Via manufacturing

F&B sector in India is looking for a makeover in order to give its customers world class service. This sector is looking towards outsourcing and some of the basic products such as breads and cookies have already been outsourced and it is expected that it would move on to pre packaged ready to eat food products.

Now probably you will see the kitchens and kitchen theaters getting more refined and now there would be more stress on substance rather than the performance of the chef. Get ready to see the products being produced at an ISO certified setup.

Next time you visit a bakery shop in a five star hotel in India and find the pastries out there simply - don’t thank the chef but do thank the management for adopting the outsourcing model. Good food at ordinary prices!!

Via expresshospitality

India continues to get outsourcing work from India despite the fact that U.K. employees have been protesting it with all their lungs. Though some takeovers by Indian companies in U.K have led to a number of jobs being created in U.K. it has subsided the level of protests but has not ended it completely.

A number of companies are looking to India for outsourcing their jobs and shed their losses but since political factor plays a dominant role in U.K. it would be difficult for the companies to outsource jobs by shedding employment.

The counter jobs created by Indian companies will certainly help in bringing down the pressure created by the people who have been thrown out of employment and also make outsourcing transactions between U.K. and India a smooth journey. Lets hope for the best.

Via mangalorean

With competition steaming up among multinationals and the product life cycle of products getting shorter day by day companies are now focusing on their R&D and therefore R&D management is gaining importance. Companies have now started to outsource various functions such as R&D and design and this has enabled them to focus on their core functions such as marketing and sales.

Companies have been outsourcing their R&D functions since it has enabled them to gain on costs and at the same time get quality results coupled with strengthening of process development expertise and infrastructure. R&D outsourcing has achieved further impetus due to the emergence of global sourcing strategies of MNCs which has enabled companies to serve various markets.

Bigger companies such as Alcatel and Intel have increased their R&D investments and set up their centers in a number of developing countries. All this points out that R&D outsourcing is in and companies are quite comfortable with it.

Via Bangkokpost

The major areas where cost saving is obtained in the ICT industry is that of movement of infrastructure like servers and networks out of house. As per researches it has been found that there is an average cost reduction of 27%. It has also been found that a saving of 20% been achieved in the outsourcing of application development. On the other hand the outsourcing of helpdesk services reduces the costs by 13%.

The research also reveals that outsourcing ICT infrastructure provides the highest average return by providing the most consistent success and lowest amount of risk. It has also been found that main reason for outsourcing is the increased efficiency. The reduction in overhead expenditures or the access to ICT expertise to internal training and management are really important.

The research was conducted by Info-Tech Research Group. The research included interviewing of around 1600 businesses in North America in 2006.

Via zdnet

China is catching up with in India in the field of outsourcing. The latest achievement for China has been the bagging of a new outsourcing contract of the telecom giant Avaya. As per recent reports the call centre industry in china is expected to grow at 22% this year.
There has been a huge increase in the labor force engaged in the IT outsourcing industry. The total number of people engaged in IT companies and bank hotlines has reached 1, 58,000 this year an increase of 22% from the preceding year. On the other hand the workforce engaged in call centers in India is expected to rise at a rate of 16%.

Major multinationals have shifted their call centers to china to take advantage of the cheap labor. The major multinationals that have shifted to China are HP, Motorola and Dell Inc. Now to make the Chinese call centers competitive delegations are coming to India to learn from them. Guess they will learn from us and then leave us behind.

Via newkerala

The next thing which will take the outsourcing world by storm is human resource outsourcing which will result in savings in operational costs. After IT now it’s the turn of HR to benefit from outsourcing due to the high volume of repetitive business it offers.

Rawdon Simon, Managing Director, Compass Consulting said:

This process is an overhead and the only way it can be done that adds value to an organisation is as efficiently as possible or not at all i.e. outsource it. The economies of scale available through outsourcing such functions make this an attractive option and most organisations will be keen to realise such benefits.

Outsourcing of HR is expected to generate savings to the tune of twenty to forty percent. Besides cost savings it will allow companies to focus on their core business and improve their product quality and customer service. Though every company can benefit from HR outsourcing but some say that only bigger companies have been able to benefit from HR outsourcing.

I simply don’t agree with it and feel that even smaller companies can gain from outsourcing and not just the larger companies can dominate it.

Via crn

It is expected that the market for Remote Infrastructure Management Outsourcing or RIMO will shoot past $8 billion in the next five years. This area is garnering a whopping growth of sixty percent per year. Most of the growth is being attributed to pilot contracts renewal and also to new contracts.

The growing popularity of RIMO can be attributed to the fact that it has improved the IT asset ownership arrangements flexibility and has improved control over IT service delivery. Though the Infrastructure Outsourcing market looks smooth on the surface and is progressing in line with the overall industry but there are certain changes in the market which are being driven by the birth of new technologies in infrastructure and fundamental changes in the Information technology asset ownership dynamics.

Via tekrati

Search engine optimization or SEO is an important part of online marketing since without proper promotion you cannot sell anything on the web. In case your company is feeling the load of SEO or does not have the skilled people required for the job then you can certainly go for SEO outsourcing.

The primary reason people opt for SEO outsourcing is that one can save on costs and utilize that money for other important events. With SEO outsourcing you would not be required to maintain a huge staff which can burden your company. Secondly there is a dearth of quality SEO professionals in the market therefore it would be better to opt for a SEO outsourcing company which would be responsible for giving you quality service on time.

Just see how a quality outsourcing service can help to increase the traffic on your website and bring higher sales to you therefore its better to go for SEO outsourcing.

Via a1technology

Up till now Pune and Bangalore used to be the preferred destination for companies to set up their outsourcing shops but these cities have not been able to keep pace with the development which has taken place and have taken a brunt. The infrastructure in these cities is crumbling under pressure, population is rising, basic amenities too are not good and the major reason behind this is that the administration never thought that these slow paced cities would start buzzing with activities and that too within a short span of time.

Now the time has come when we should think about other cities too. Kolkata is emerging as an important destination for outsourcing since it has a vast pool of talent and can certainly help in easing the pressure on Pune and Bangalore. Low costs and large pool of talent is attracting investments in Kolkata and it can certainly cash on the advantages that it offers but the city would have to keep in mind that in the process it should not follow the same path on which the cities mentioned above have reached as it would do more harm than good in the long run for the people of this bustling city.

Via nitawriter