Search Results for ‘offshoring’
It’s such a taboo subject and gets such a bad rap that it’s almost not even worth defending. You might be better off defending socialism at a “Tea Party” rally. Okay perhaps that’s overdoing it. It’s not that bad.
However, one mention of the word outsourcing and you get a lot of people up in arms. It’s one of those words that has just accumulated a terrible reputation over the years, whether it’s fair or unfair. When major politicians (Hello Mr. President) and influential business leaders such as Bill Gates speak out against outsourcing, you know it’s destined to become a poisonous term.
But is it fair? It seems like there are plenty of misconceptions on the subject out there. For one, outsourcing is a bit different than offshoring. Outsourcing is putting the work in a hands of a third party vendor, it could be abroad or at home. Offshoring is sending the work overseas, it may stay in the same company or not.
One thing seems certain, there have to be reasons as to why some of the biggest companies such as IBM and American Express outsource constantly. What are the pros of the outsourcing? What are the cons? These are the questions we at Business Review USA try to answer with a good ol’ fashioned list of pros and cons.
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April 13th, 2010
India and China continue as top offshoring destinations; but Central/Eastern Europe falls while Southeast Asia and Middle East countries rise
Deteriorating cost advantages and improved labor quality are driving a dramatic shift in the geography of offshoring according to the latest edition of global management consulting firm A.T. Kearney’s Global Services Location Index (GSLI), a ranking of the most attractive offshoring destinations.
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May 21st, 2009
Shared Service Organizations (SSOs) have achieved dramatic improvements in cost and productivity, according to new research from The Hackett Group, Inc. (NASDAQ: HCKT). While SSOs have been rewarded for such good work, business expectations are now forcing companies to drive toward a second wave of value creation utilizing complex operating models.
Hackett’s latest Book of Numbers research finds that companies seeking to move up the value chain are implementing a multi-layer shared services model that incorporates transaction processing centers in low-cost regions, centers of excellence, and high-level onsite support for analysis and decision-making. Many SSOs have also expanded beyond finance to incorporate functions such as IT, procurement, and HR — in fact, an “everything in G&A” approach is leading edge. At the best SSOs executives make sourcing decisions relating to scope and geography within a continuous improvement and customer service culture.
Results from the research, which examines shared service operations at more than 150 global companies, is featured in Hackett’s latest Book of Numbers research volume, “World-Class Shared Services: Expanding Beyond the Transaction.” The research also features case histories on shared service successes at Hewlett-Packard and Royal Philips Electronics.
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March 4th, 2009
IT Consulting firm Deloitte has published a new whitepaper titled, “The Risk Intelligent Approach to Outsourcing and Offshoring” to help companies address today’s significant outsourcing and offshoring risks and maximize the value of their outsourcing and offshoring strategy.
The global information technology and business process outsourcing market is approaching US$600 billion and is growing rapidly, according to Deloitte. In today’s global economy, investments in outsourcing and offshoring initiatives have never been higher, or more critical to organizational success.
Corporations are facing dramatically increasing risks as they rely more than ever on other parties and/or offshore entities for a growing number of business and information technology processes. The paper, the eighth in the Deloitte Risk Intelligence series, identifies several trends that have increased outsourcing and offshoring risks: (more…)
February 7th, 2008
Indian software services firms such as Infosys Technologies Ltd, Wipro Ltd and Satyam Computer Services Ltd are looking to partner with or acquire local firms in Germany in an effort to tap European market for offshore IT services which, apart from growing at a fast clip, is also emerging as a natural hedge against a slowdown in the US, which accounts for the bulk of their business.
According to software lobby group National Association of Software and Service Companies Nasscom, the US market accounted for 65 percent of the USD32 billion Rs1.27 trillion revenues Indian IT companies earned in 2006 to 07.
There is a need to have different strategy for the German market to overcome language and cultural issues, said Peter Heij, head, Continental Europe, Satyam Computer Services Ltd, which recently formed a partnership with Arvato Systems, the IT division of the Bertelsmann Group, to offer services and solutions to companies in Germany, Switzerland and Austria.
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January 23rd, 2008
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