November 2002 Issue

Welcome to our November issue of Sourcing Alert! The verdict is out. Our October poll on the perceived challenges in offshore sourcing drew an overwhelming number of votes. Quality of delivery ranked number one in the buyer-supplier relationship, followed closely by geographic stability. So, this month we focus on reducing risks associated with offshore sourcing.

With a view to optimize your decision parameters, neoIT is constantly tracking global changes to bring you updated news, views and trends in the outsourcing space. Offshoring, though categorized as a high-risk sourcing option, is increasingly being seen as a viable alternative to enhance business processes, cut costs and concentrate on core business strengths. This month, our expert Brian Tumpowsky shares his thoughts on identifying the risks in offshore sourcing.

 
Sourcing Articles
Offshoring’s Insurance Policy
By Brian Tumpowsky, neoIT
 

The ability to offshore and tap into a global network to help improve a company’s cost basis and operational performance is a tangible, real option for many companies. Yet, the complexity inherent to services management, and the risks involved in offshoring services have prevented many companies, including half of the Fortune 500, from considering this approach (despite the lure of lucrative cost savings). Fortunately, there are products and services now in the market to help companies take advantage of offshoring capabilities while minimizing the risk in these types of arrangements.

The Wide Open World of Outsourcing Opportunities
(sponsored by Ross Research)
 

Outsourcing has caused quite a stir over the past several years as buyers, industry analysts, financial analysts, shareholders and even the national business press continue to realize its strategic value as an operational alternative. The outsourcing industry holds the promise of delivering strong profitability to savvy, qualified, and flexible outsourcing service providers – traditional, mid-sized, and niche – around the world.

Outsourcing to India will increase
(sponsored by Siliconindia.com)
 

India will benefit further from US companies as more and more decide to migrate to the offshore model, said Rita Terdiman, research director for Gartner, in her presentation at Nasscom-Gartner seminar.

 
Industry Research and Case Studies
Outsourcing Consultants Play a Catalyst Role
Merrill Lynch-October 2002
 

In this issue of B'lore Bytes, Merrill Lynch discusses the catalyst role being played by outsourcing consultants to facilitate sourcing engagements and reduce the offshore outsourcing risks for customers

STUDY: Outsourcing Poised to Command Greater Portion of IT Budgets
EMarket - October 2002
 

Outsourcing of all forms is poised to command a greater portion of corporate IT budgets as business and IT managers look to reduce costs and service providers offer improved efficiencies and better service, according to a new report by Aberdeen Group (www.aberdeen.com)

 
Special Events
Nearshore & Offshore Outsourcing Conference Series
 

November 18-19, 2002
Burlingame, CA


Discussion on benefits of outsourcing – nearshoring, offshoring—and the associated benefits/risks involved.

Business Process Outsourcing Asia
 

November 26-28, 2002
Singapore


Meet to dwell on issues involved in BPO – a hot area in outsourcing now. This will be Asia-specific.

 

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
  The Sourcing Interests Group
Outsourcing, strategic sourcing, eCommerce and procurement best practices D&B.
 
  WITSA
Sourcing knowledge from consortium of 46 IT industry associations.
 
neoIT in the News
  Siliconindia, October 2002
SeE consulting achieves neoQA certification
 
  Business-Standard, September 2002
neoIT to outsource $1 billion projects to Indian firms
 
  Business-Standard, September 2002
Security is the buzzword in IT
 

Opinion Poll
  In your opinion, what is the highest risk in an outsourcing deal?
 
Country infrastructure
Supplier domain knowledge
Supplier delivery capabilities
Location
 
View results

View editorial comments on October poll

Learn more about neoIT

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Note: Articles will be edited for content and length.
 
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