January 2003 Issue

Wish You a Happy & Prosperous 2003!

Welcome to our January issue of Sourcing Alert!

neoIT expects to see a significant rise in offshore outsourcing over the next year, especially in the BPO sector. We are tracking changes in the outsourcing space to give you updated news, views, trends and add value to your outsourcing decisions. This month, our in-house expert Nishant Verma shares his thoughts on risk management in offshore deals.

As we start the New Year, we leave you with a few things to think about as you build your offshore sourcing plans for 2003:

What to offshore: The BPO market is growing—more companies are outsourcing business processes and suppliers are strengthening their capabilities
Where to offshore: Country markets other than India are building strong competencies such as Philippines, Russia and China
When to offshore: Companies that have offshore experience will increase their deal sizes and create larger multi-sourced environments
How to offshore: Buy and build models are flourishing in addition to the typical outsourcing arrangements
Maximizing ROI: Organizations who outsource will increase focus on managing the sourcing lifecycle as a competency
 
Sourcing Articles
Risk Management in Offshore Deals
By Nishant Verma, neoIT
 

Most large corporations today face the opportunity of significantly reducing their cost of operations through outsourcing, and more specifically, “offshoring” certain activities and business processes. The emphasis now is not solely on the “cost of service,” as buyers look for a greater value-add in terms of process improvements, scalability and offshoring as a strategic business model, which can be leveraged on a competitive plane. In this light, offshoring risks have a wider definition stemming from the non-achievement or under-achievement of one or more of these objectives.

Culture and change: The impact of outsourcing
By Andrew Kris, SBPOA
(Sponsored by Ross Research)
 

In today's economic climate, an outsourcer has no margin for error. Working effectively with global customers, suppliers, and colleagues is a competitive requirement that demands knowledge, insight, and skill. Effective employees with the skill to work globally have mastered the ability to understand the expectations of their clients and partners. They communicate critical information clearly, work hard to avoid cultural misunderstandings, and build cross-cultural relationships vital to international success.

 
Industry Research and Case Studies
Offshore Supplier Due Diligence
neoIT — December 2002
 

Offshore sourcing of IT and other business services has become an effective option for a growing number of leading companies. These firms are using a portfolio approach that arms them with different options and risk factors appropriate for specific sourcing events: on-site, on-shore, near-shore and offshore. To mitigate the risks associated with each sourcing option, neoIT discusses reasons for third-party due diligence and provides recommendations for enterprises as they evaluate offshore sourcing and suppliers.

A Buyer’s Guide to Offshore Outsourcing
CIO — November 2002
 

Wondering where to send your call centers, application development and QA testing? Check CIO magazine’s offshore sourcing map for a worldwide comparison of prices, risks and other common considerations. Look for neoIT to publish their own map in March 2003 or contact a neoIT sourcing advisor for a country-by-country in-depth comparison.

 
Special Events
Telcos' Outsourcing Strategies and Experiences Forum
 

January 29 - 31, 2003
Central London


This conference will focus on the emerging outsourcing options available in the fixed voice, wireless and data networks spaces. Senior representatives can learn from the outsourcing experiences of their peers.

2003 Outsourcing World Summit
 

February 24 - 26, 2003
Palm Desert, California


This conference will focus on exploring the fastest growing areas in the process side of the business; in such activities as human resources, administrative services and finance and accounting.

The 2nd Annual Healthcare Outsourcing Congress
 

March 31st & April 1st, 2003
Las Vegas, Nevada


The Healthcare Outsourcing Congress is the premier event that focuses exclusively on cost-effective strategies for outsourcing IT and business processes in healthcare (primarily in hospitals and health plans).

Lawson CUE
 

April 13 – 16, 2003
Orlando, Florida


This is the most comprehensive user conference for Lawson services and products. This year's conference will provide both leadership and interactive learning opportunities for everyone involved — including Lawson customers, partners and prospects.

SIG Sourcing 2003
 

May 6 - 9, 2003
Huntington Beach, California


SIG Sourcing 2003 focuses on the most current topics in the sourcing industry including companies in the news, leading corporate executives and top sourcing advisors.

 

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.

 
Resources
  SBPOA
Gain a better understanding of how to lead best-in-class Shared Services or BPO activities.
 
  Shared Services
Learn from experiences of global professionals involved in shared services operations
 
neoIT in the News
  CIOL,
December, 2002

India must focus on application outsourcing
 
  Express Computer,
December, 2002

Recreating the software magic with BPO
 
  Business Standard,
December, 2002

Outsourcing blues for Indian IT
 

Opinion Poll
  What projects and processes are you looking to outsource to an offshore location this year?
 
Application Support & Maintenance
Application Development
Supply Chain Management
Sales, Marketing & Customer Care
Business Administration (HR/Finance/Payment Services)
 
View results

View editorial comments on December poll

Learn more about neoIT

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