 Volume 5 Issue 7 | July 2007 |
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Offshore Insights is now Global Services Insights
neoIT renamed this newsletter to reflect the maturing nature of the industry. The term “offshore” increasingly implies using labor arbitrage for cost savings. "Global services" emphasizes leveraging global talent for a broader range of value propositions.
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Welcome to the July 2007 issue of Global Services 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.
This month, neoIT's research brief Overcoming the Dollar’s Demise brings to forefront the impact of currency fluctuations on clients who are leveraging global sourcing. These fluctuations are currently affecting the profitability of service providers and clients should expect vendors to react by passing along costs wherever possible. The research report, helps clients plan for changes in outsourcing relationships that will inevitably occur as offshore vendors adapt.
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| Offshore Outsourcing Articles |
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Overcoming the Dollar’s Demise
By neoIT
The research brief looks at the implications of currency fluctuations on vendors and the potential impact on client organizations. While the current downward movement of the U.S. dollar is not likely to result in major changes for global services clients, clients need to be prepared for longstanding vendors to undergo behavior changes, In India, for example, the U.S. dollar has slipped 8.5% compared to the Rupee since the start of 2007. Putting contingency plans in place now to deal with currency risk will help to avoid unpleasant surprises later in the year
neoIT’s research recommends client organizations consider developing contingency plans, such as building currency fluctuations and hedging risk into global services contracts. At the same time, clients need to closely monitor current sourcing agreements so that they are aware of incremental changes in vendor’s practices and billing procedures which subtly mask price increases.
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| Industry Research and Case Studies |
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Guide to Better Negotiations
July 24, 2007
10am PDT
Michel Cohen from Applied Materials and Jojo Aquino, Managing Director, neoIT discuss frameworks and best practices in contract negotiations as well as the critical steps to be taken pre-negotiations that can ensure a more successful outcome. |
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Service Level Agreements & Management July 31 - August 1, 2007
Mumbai, India
Hemant Puthli, neoIT Senior Director, to deliver a keynote on Managing SLA's Through Sound Governance Framework.
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6th Annual BITS Financial Services Outsourcing Conference November 5 – 6, 2007
Doral, FL
Atul Vashistha, neoIT CEO, delivers a keynote on the Globalization of Professional Services under the event theme of the ‘Many Faces of Human Capital'
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The Business Finance Magazine Conference November 12, 2007
Atul Vashistha, neoIT CEO, presents on the topic of Reinventing Finance: How to Leverage the Global Services Advantage.
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| Offshore Knowledge Center |
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Visit the Offshore Knowledge Center to learn more about services globalization. Review best practices on the full lifecycle of global services delivery 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.
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The Fourth Wave of Services Globalization: Transitioning to a Managed Services Model
By Atul Vashistha
CEO, neoIT
The first wave of services globalization is staff augmentation on-site model, the second is the globalizing of staff augmentation, The third wave is about globalizing commodity processes in great scale but with the client retaining significant resources and responsibilities and the The fourth wave is the globalization of these processes at significant scale with full responsibility for SLA's given to the supplier, which is Transitioning to a Managed Services Model from a Staff Augmentation Model. Traditionally, when a company wanted to grow its business and keep staffing flexible, it worked within a Staff Augmentation Model: it hired more contractors. In most cases, those were part-time or contract-based, but they were like employees nonetheless – with all or more of the accompanying costs and potential difficulties while a number of factors worked together to foster the growth of managed services (including the rising maturity of suppliers), one was certainly the significant disadvantages inherent in the Staff Augmentation Model. |
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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 articles@neoIT.com. |
| Note: Articles will be edited for content and length. |
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