Outsourcing Deal Activity - May 2011
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Showing posts with label outsourcing. Show all posts
Showing posts with label outsourcing. Show all posts
Sunday, June 26, 2011
Wednesday, February 25, 2009
Changing Gloabalization
Obama announced that there would be no tax breaks to US companies that outsource their jobs abroad. Clearly a step to deter US companies from outsurcing their work to other countries. Outsourcing as a strategy has been adopted by companies not only in US but also across the world and its benefits are universally acknowledged. It would be interesting to see if US govt successfully curbs outsourcing by US companies as it gives an oppurtunity for non-US companies to grow financially by getting that competitive edge. Most of top performing companies across various industry verticals are based in US and this might change change soon.
Obama announced that there would be no tax breaks to US companies that outsource their jobs abroad. Clearly a step to deter US companies from outsurcing their work to other countries. Outsourcing as a strategy has been adopted by companies not only in US but also across the world and its benefits are universally acknowledged. It would be interesting to see if US govt successfully curbs outsourcing by US companies as it gives an oppurtunity for non-US companies to grow financially by getting that competitive edge. Most of top performing companies across various industry verticals are based in US and this might change change soon.
Sunday, September 30, 2007
World’s coming to India: five cities among the top outsourcing hubs
Bangalore, September 28: Chennai, Hyderabad, Pune and Kolkata are rated among the top five emerging destinations worldwide in the latest ranking of top 50 promising outsourcing cities around the globe. Bangalore, Delhi NCR and Mumbai, along with Manila and Dublin, are the five established hubs that are unlikely to fade from the outsourcing map, according to a study by services globalisation & investment advisory firm Tholons and media group Global Services.
he study ranked Chennai as the top most emerging hub for outsourcing globally, with established expertise in application development and maintenance, finance and accounting, product development, engineering services and testing. The Tamil Nadu government was IT-friendly, and an upcoming Mahindra World City, slated to be the world’s largest IT Park, in Chennai was favourable to its outsourcing climate.
Hyderabad, with relatively low property rentals and favourable government policies, recently attracted investments from BPO majors such as HCL BPO, EXL Services and Genpact and was ranked second in the list. However, recent terrorist attacks in the state have alarmed investors, the report pointed out. Pune gained prominence among outsourcing hubs owing to lower operating costs and attrition rates compared to other metros.
Among the 50 global hubs, Chandigarh, which was described as “one of the best planned cities in India” was ranked at nine and Coimbatore at 21. Cebu City in the Philippines, Ho Chi Minh in Vietnam, Sri Lanka’s Colombo and the Chinese cities of Shanghai and Beijing were also among the ten top outsourcing locations.
Kolkata and Bangalore were emerging as workplaces for application development and maintenance and business analytics, respectively. Tholons CEO & chairman Avinash Vashistha said tier-II centres are gaining prominence as investors become wary of investing in a single city as operations grow. Locations were being gauged for the available skill-sets, and investment decisions were business-driven, he said.
EMERGING CENTRES by rank
1. Chennai (India)
2. Hyderabad
3. Pune (India)
4. Cebu City (Philippines)
5. Kolkata (India)
6. Ho Chi Minh City (Vietnam)
7. Colombo (Sri Lanka)
8. Shanghai (China)
9. Chandigarh (India)
10. Beijing (China)
Bangalore, September 28: Chennai, Hyderabad, Pune and Kolkata are rated among the top five emerging destinations worldwide in the latest ranking of top 50 promising outsourcing cities around the globe. Bangalore, Delhi NCR and Mumbai, along with Manila and Dublin, are the five established hubs that are unlikely to fade from the outsourcing map, according to a study by services globalisation & investment advisory firm Tholons and media group Global Services.
he study ranked Chennai as the top most emerging hub for outsourcing globally, with established expertise in application development and maintenance, finance and accounting, product development, engineering services and testing. The Tamil Nadu government was IT-friendly, and an upcoming Mahindra World City, slated to be the world’s largest IT Park, in Chennai was favourable to its outsourcing climate.
Hyderabad, with relatively low property rentals and favourable government policies, recently attracted investments from BPO majors such as HCL BPO, EXL Services and Genpact and was ranked second in the list. However, recent terrorist attacks in the state have alarmed investors, the report pointed out. Pune gained prominence among outsourcing hubs owing to lower operating costs and attrition rates compared to other metros.
Among the 50 global hubs, Chandigarh, which was described as “one of the best planned cities in India” was ranked at nine and Coimbatore at 21. Cebu City in the Philippines, Ho Chi Minh in Vietnam, Sri Lanka’s Colombo and the Chinese cities of Shanghai and Beijing were also among the ten top outsourcing locations.
Kolkata and Bangalore were emerging as workplaces for application development and maintenance and business analytics, respectively. Tholons CEO & chairman Avinash Vashistha said tier-II centres are gaining prominence as investors become wary of investing in a single city as operations grow. Locations were being gauged for the available skill-sets, and investment decisions were business-driven, he said.
EMERGING CENTRES by rank
1. Chennai (India)
2. Hyderabad
3. Pune (India)
4. Cebu City (Philippines)
5. Kolkata (India)
6. Ho Chi Minh City (Vietnam)
7. Colombo (Sri Lanka)
8. Shanghai (China)
9. Chandigarh (India)
10. Beijing (China)
Monday, April 09, 2007
About 72% of Irish Firms Prefer IT Outsourcing – ICS
According to a study by the Irish Computer Society (ICS), the national body for ICT professionals in Ireland, about 72 percent of the Irish organizations outsource their IT operations, while the remaining 28 percent do not outsource their IT functions due to factors such as uncertainty regarding providers’ ability to supply the required level of service, apprehension about the realization of outsourcing benefits and goals, and concerns over the management of the outsourcing providers.
In addition, hardware maintenance, application development, application support, website development, and consultancy were cited as the most frequently outsourced IT functions. In terms of sectors, public sector organizations prefer to outsource application development and hire consultants, while private sector organizations outsource hardware maintenance.
The study estimated that although the smaller organizations do not have appropriate IT infrastructure and human resources, they outsource less as compared to large organizations. Only 4 percent of the organizations outsource the entire IT functions to external vendors.
The study revealed that the IT outsourcing among the various Irish firms was driven by the provision of additional IT services and not cost reduction.
According to a study by the Irish Computer Society (ICS), the national body for ICT professionals in Ireland, about 72 percent of the Irish organizations outsource their IT operations, while the remaining 28 percent do not outsource their IT functions due to factors such as uncertainty regarding providers’ ability to supply the required level of service, apprehension about the realization of outsourcing benefits and goals, and concerns over the management of the outsourcing providers.
In addition, hardware maintenance, application development, application support, website development, and consultancy were cited as the most frequently outsourced IT functions. In terms of sectors, public sector organizations prefer to outsource application development and hire consultants, while private sector organizations outsource hardware maintenance.
The study estimated that although the smaller organizations do not have appropriate IT infrastructure and human resources, they outsource less as compared to large organizations. Only 4 percent of the organizations outsource the entire IT functions to external vendors.
The study revealed that the IT outsourcing among the various Irish firms was driven by the provision of additional IT services and not cost reduction.
Thursday, January 18, 2007
Demand for Outsourcing Growing Slowly – EquaTerra
According to EquaTerra 4Q 2006 Outsourcing Pulse Surveys, the demand for outsourcing in the BPO and ITO market is growing at a slower pace as compared to the growing rate of earlier years. The organization reported that there has been a decrease of about 13 percent in the last quarter of 2006 as compared to 3Q 2006 and 4Q 2005.
Among the key findings, the non-traditional functions, such as document and imaging services, legal processing, knowledge process, and logistics services outsourcing increasingly depends on both supply and demand. Also, there has been an increase in the multi-provider outsourcing that allows the client to have the best for each of its process. However, the multiple services provider model can be ranked as complicated as well as expensive as compared to outsourcing services to the single services provider.
In addition, most of the clients outsourcing their processes underestimate the cost and complexity related issues while performing Outsourcing Management and Governance (OM/G) activities, including the governance organization’s staffing, the costs related to the third-party services, such as lawyers, advisors, etc., and the costs related to the software support for OM/G activities. The above mentioned reasons are often considered as one of the root causes for problems related to outsourcing.
According to Stan Lepeak, Managing Director – Research, EquaTerra, most of the outsourcing contracts awarded during the late 1990s and early 2000s were not structured properly, which used to create problems either for the service providers or clients.
According to EquaTerra 4Q 2006 Outsourcing Pulse Surveys, the demand for outsourcing in the BPO and ITO market is growing at a slower pace as compared to the growing rate of earlier years. The organization reported that there has been a decrease of about 13 percent in the last quarter of 2006 as compared to 3Q 2006 and 4Q 2005.
Among the key findings, the non-traditional functions, such as document and imaging services, legal processing, knowledge process, and logistics services outsourcing increasingly depends on both supply and demand. Also, there has been an increase in the multi-provider outsourcing that allows the client to have the best for each of its process. However, the multiple services provider model can be ranked as complicated as well as expensive as compared to outsourcing services to the single services provider.
In addition, most of the clients outsourcing their processes underestimate the cost and complexity related issues while performing Outsourcing Management and Governance (OM/G) activities, including the governance organization’s staffing, the costs related to the third-party services, such as lawyers, advisors, etc., and the costs related to the software support for OM/G activities. The above mentioned reasons are often considered as one of the root causes for problems related to outsourcing.
According to Stan Lepeak, Managing Director – Research, EquaTerra, most of the outsourcing contracts awarded during the late 1990s and early 2000s were not structured properly, which used to create problems either for the service providers or clients.
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