February 2003 Issue
neoIT’s Sourcing Alert is now Offshore Insights!
Welcome to our inaugural issue!

Sourcing to specific countries across the globe has unique advantages in terms of labor arbitrage, functional skill sets and other key factors. In a recent report, IDC estimates that offshore outsourcing will grow at a nearly 40% compounded annual growth rate and increase its proportion from a quarter to more than one-third of the total IT Services spending. Similarly, the growth of offshore business process offshoring is expected to double over the next five years.

We are tracking the offshore outsourcing space to give you updated news, views, trends and add value to your offshore outsourcing decisions. This month, our in-house expert Michael Taylor gives his insight on the unique opportunities and challenges of sourcing to specific countries. We also look into contracting and negotiation issues of sourcing to one such country — Russia.
 
Sourcing Articles
Location, Location, Location - Why The Country Decision Precedes the Vendor Decision in Offshoring
By Michael Taylor, neoIT
 

What are the key risk factors to consider when looking at offshore locations? How can your company be assured that they answer the question of where to offshore correctly? Developing countries are producing new, sophisticated providers to deliver superior IT and Business Process Outsourcing (BPO) services. Superior quality and highly competitive prices offered by these new companies have shifted the strategic focus of large and small companies to issues like: What to offshore? Why offshore? Where to offshore? When to offshore? How to offshore? Whom to offshore with? How to manage the offshore relationship?

A Legal View of Information Technology Sourcing in Russia
By Michael A. Lysobey, LeBoeuf, Lamb, Greene & MacRae, L.L.P.
 

Russia is in the limelight in terms of offshore outsourcing, especially for companies like Sun Microsystems, LSI Logic, Motorola, Intel, Boeing and Northern Telecom. Russia’s qualified inexpensive labor and good R&D is drawing many IT players into it, mainly for software coding jobs. This interest has brought out new issues: Opening an accredited representative office, hiring a research institute, setting up individual contracts with researchers, protecting the intellectual property so that it can be integrated into a Western company's worldwide operations, and ensuring cultural compatibility.

 
Industry Research and Case Studies
Monthly Report on Russian Economy
An Eye on Russia
Ernst & Young - January 2003
 

This monthly review from E&Y talks about the state of the Russian industry and economy scenario. Page 7 of this 12-page report dwells on how Russia stands in terms of projects being sourced into and outside Russia.

Outsourcing Thought Leadership
What’s ahead for Sourcing in 2003 & Beyond
Ross Research — January 2003
 

Sourcing luminaries from professional associations, legal firms, buyer community, services providers, research agencies and academia share their thoughts on the state, direction and future of the industry over the next few years. They talk about BPO, offshore outsourcing, mega deals, real-world experiences, new RFP structures, competitive strategies, change management, human side of outsourcing and market consolidation.

Click to Purchase report 
** Enter the word neoIT into the Promotional Code box next to the report(s) you want to purchase. A 10 percent discount will automatically be applied to the final amount.

 
Special Events
RUSSOFT Software Outsourcing Summit 2003
 

June 25-27, 2003
St. Petersburg, Russia


The event, focusing on IT outsourcing, offshore software development, expects over 300 companies to participate, from Russia, Ukraine, Byelorussia, Scandinavian countries, USA, Germany and Japan. The Summit expects to build a bridge between IT outsourcing buyers and providers; let potential customers learn about the tremendous opportunities that Russian IT software development can provide as technological and business partners and to create a platform for matchmaking meetings and contacts.

2nd Annual International Outsourcing Conference
 

March 9 – 11, 2003
New York, NY


The second annual event will focus on the unique challenges to business process outsourcing

** neoIT CEO to deliver presentation, Total Cost of Offshoring: Understanding the Risk and Return Variances

The 2nd Annual Healthcare Outsourcing Congress
 

The Summit focuses on cost-effective strategies for outsourcing IT and business processes in healthcare (primarily in hospitals and health plans).

** neoIT Vice President, Michael Taylor, to discuss emerging trends in the healthcare BPO industry.

 

Sourcing Knowledge Center
 

Visit the Sourcing Knowledge Center to learn more about offshore strategy, services sourcing technology and how your company can improve its sourcing processes. You will find reports written by respected industry analysts, offshore articles from around the Web, and other important resources, such as sourcing newsletters and presentations.

 
What’s new in SKC
  Passage Beyond India 

RP can be Big Player in Global Outsourcing Market 

Offshore Supplier Due Diligence
 
Resources
  RUSSOFT
RUSSOFT is an association of the leading companies in the field of software development from Russia and Bielorus.

neoIT in the News
  Finance Canada,
January, 2003

neoIT CEO Addresses Outsourcing Audiences in Philippines/Malaysia
 
  Dataquest,
January, 2003

India must focus on application outsourcing
 

Opinion Poll
  What are the important risk factors to control as you consider where to outsource?
 
Cultural Compatibility
Legal Framework
Infrastructure
Labor Costs
Geopolitical Risks
Core Competencies
Other
 
View results

View editorial comments on January poll

Learn more about neoIT

Your Space (Readers write-in)
 
neoIT derives knowledge from market intelligence. Your opinions and views matter to us. If you feel you have something interesting or important to tell us, please
write to

Note: Articles will be edited for content and length.
 
Email your comments and
questions to
To Subscribe, click here. Or send email to with 'Subscribe' in the subject line.
To Unsubscribe, . Or send email to with 'Remove' in the subject line.
Copyright © 2007 neoIT® All Rights Reserved.