Volume 3 Issue 11 December 2005
Articles | Research | Events | Knowledge Center

Welcome to the December 2005 issue of Offshore Insights. We continue to track the services globalization industry to provide you with the latest news, views and trends that shape the way services are purchased, delivered and managed around the world.

Services globalization has evolved to become a mature business model that both leading corporations and global service providers look to leverage. The modern-day corporation’s strategic growth plans would not be complete without addressing how a global services delivery footprint can fundamentally transform the organization’s business.

Last year neoIT predicted that in 2005 services globalization would gain significant momentum as globalized processes became a corporate “must have” and companies developed more sophisticated global delivery models across IT and other business processes. neoIT also predicted strong growth for emerging supply destinations including China, the Philippines and Central Europe (particularly Poland, the Czech Republic, and Hungary).

2005 saw many of neoIT’s predictions come to fruition.

This month’s white paper ‘Global ITO and BPO Trends for 2006’ sheds light on the levers that would drive the evolution of the ITO/BPO industries and provides predictions about how buyers and suppliers would realign themselves to be able to leverage emerging opportunities in the services globalization industry.

 
Offshore Outsourcing Articles
Global ITO and BPO trends for 2006
  By neoIT
 

Globalized IT outsourcing – is it a viable option to onshore outsourcing? Discrete outsourcing – is it a preferred sourcing strategy? Will established providers be able to continue to command premium pricing? Tactical vs. Transformational approach to services globalization – What are clients really looking for? Are there any shifts in the value that is being sought from engagements? Supplier markets – which are the emerging ones? Is China really a threat to India?

When to Make India a Manufacturing Base
  Mckinsey
 

India leads the market in offshored back-office services, but as a manufacturing center it lags behind China, Thailand, and the rest of Asia. Obstacles can be considerable, but they haven't stopped some multinational manufacturers from setting up shop in India

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Industry Research and Case Studies
Globalization in the Insurance Industry
  By neoIT
 

With limited in-house resources insurers are facing the challenge of meeting the requirements for new products development on the one hand and furnishing existing customer requests on the other. So, insurers are turning to locations where qualified resources are available in abundance. Initially, many insurers looked at Canada as a potential source. However, even that market is nearing saturation. The focus is now shifting to other parts of the world like India, Philippines, Mexico and Jamaica. This whitepaper has also explored the higher order benefits of services globalization - that of business transformation which is an emerging phenomenon today across industries, manufacturing, telecom and the insurance too.

Mapping Offshore Markets Update 2005
  By neoIT
 

In overall terms India and Canada retain their dominant position in the ITO and BPO industries. However India's weaknesses in certain segments have emerged as growing gains for newer offshoring destinations. Poland, for example has shown remarkable growth as an outsourcing destination in both ITO and BPO.

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Offshore Outsourcing Events
2006 Global Services Conference*
  February 2, 2006
New York, NY

Atul Vashistha, neoIT CEO and Conference Chair, and Charlie Cortese, Managing Director at Lehman Brothers, will discuss the 5 W's of Services Globalization Strategy: What, Where, When, Why and Who. Pavan Chahal, neoIT Managing Director, together with Dave Bass, Manager Applications Development, Time, will delve into the Practical Aspects an Organization should consider during the Sourcing Process. Tarun Mehta, neoIT Managing Director, will discuss Governance and Relationship Management in Offshoring.

*neoIT is the Content Partner for this event

The 2006 Outsourcing World Summit
 

February 20 - 22, 2006
Orlando, Florida

Atul Vashistha, neoIT CEO, will present the keynote for the Offshore Outsourcing track titled Beyond Offshoring: The Emergence of Services Globalization.


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Offshore Knowledge Center


Visit the Offshore Knowledge Center to learn more about global and offshore outsourcing. Examine best practices on the full lifecycle of off shoring from assessment and due diligence to transition, on-going management and analysis. You will find reports written by respected industry analysts, articles from around the Web, and other important resources, such as newsletters and presentations.

What’s new in the OKC
Four Myths of Services GlobalizationSM
The Outsourcing Enterprise: The Power of Relationships
NASSCOM- Mckinsey Report 2005
IT Services Snapshot
Top
neoIT in the News
  Three IT Companies Eyeing Bacalod
  The Visayan Daily Star,
December 2005
  Three international firms are seriously eyeing Bacolod City as their next IT site, Councilor Jocelle Batapa-Sigue said. neoIT consultancy has identified eight cities outside Manila that are likely to develop into attractive outsourcing destinations
 
  'Adapt or die' Airlines Warned
  Asia Travel Tips,
December 2005
  Avinash Vashitha, Managing Partner of technical advisors, neoIT, who showed how carriers can save millions by sending functions from a surprising number of areas
 
  India: Desperately Seeking Talent
  Business Week,
November 2005
  Outsourcing consultancy neoIT keeps junior execs happy by offering them the opportunity to work with customers who are top global players
 
Resources
  RUSSIA: RUSSOFT
  RUSSOFT is an association of the leading companies in the field of Software Development from Russia and Bielorus. Currently RUSSOFT consists of more than 50 companies with 6000 highly qualified software developers who are experienced across a broad range of applications and technical platforms. RUSSOFT companies have provided services to small and intermediate sized companies as well as many of the Fortune 500 companies.
 

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