Volume 3 Issue 5 May 2005
Articles | Research | Events | Knowledge Center

Welcome to the May 2005 issue of Offshore Insights! We are tracking the offshore outsourcing space to give you updated news, views and trends to add value to your offshore outsourcing decisions.

The growth of global services sourcing is driven by several factors, but cost savings is the most significant. The potential to utilize the resources of developing, low-cost economies to substitute service delivery from developed, high-cost countries is the core of services globalization. There are many factors that contribute to the cost-saving potential of any global sourcing scenario. A clear understanding and ability to weigh each of the factors is critical in any firm’s successful implementation and optimization of a global sourcing initiative. These factors include both direct-cost and hidden-cost elements that play a role at both the low-cost delivery location (either offshore or nearshore) as well as the high-cost onshore location. Of all of these cost components, the wage rate differential between onshore and offshore or nearshore locations provides the most compelling reason for the global sourcing of IT services.

This month we focus specifically on how the wage rate differential contributes to a firms’ cost savings determinations, and ultimately to their global sourcing decisions.

 
Offshore Sourcing Articles
Offshore & Nearshore ITO Salary Report 2004
  By neoIT
 

The bulk of this report is an investigation of wages across experience levels in specific offshore and nearshore locations and the particular characteristics of each country that affect its ability to offer global sourcing services. A look at how IT wages in each country have changed and are expected to change is also included.

Top
Industry Research and Case Studies
Best Practices in Communicating Global Outsourcing Initiatives
  By neoIT
 

The success of the communication plan depends on the development of customized communication streams that have the end objective of addressing key challenges, managing resistance to change and achieving stakeholder “buy-in”. Effective communication strategies comprise of both internal and external elements and are treated as a separate function with its own set of objectives, guidelines and tactics. This issue goes on to discuss the factors that an organization should consider when developing an effective communication strategy.

Captive Offshore Development Centers (CODCs): Are they delivering the desired value?
  By neoIT
 

The increased acceptance of offshore outsourcing with IT departments and Independent Software Vendors (ISVs) has encouraged the development of global delivery models through geographically dispersed company owned captive offshore development centers (CODCs). Capabilities of CODC’s differ based on the strategies of the parent organization and should be expected to evolve over time to better align with the overall strategy of the parent organization. The CODC framework discussed in this paper identifies the key factors that need to be in place within the CODC for it to move beyond its cost reduction role to a more value-added role of supporting the parent organization’s business strategies

2005 Outsourcing World Summit Summary
  IAOP
 

The just completed Outsourcing World Summit, the 17th in a global conference series first held in 1998, brought together more than 400 executives and professionals from across the field and around the world. The collective insights of the speakers and delegates would rival Google as a source of information on the topic of outsourcing.

The summary is a compilation of 46 top facts, figures, and findings shared over the event's three days

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Special Events
China Outsourcing Fair 2005
 

June 8 - 10, 2005
Shenzhen, China


Sabyasachi Satpathy, neoIT Research Director, to speak on: China's Position in the Global Outsourcing Industry - Then, Now and Beyond.

Download information on partnering with Chinese companies

Baker & McKenzie-neoIT Global Outsourcing Webinar Series
 

June 28, 2005- 'Global Outsourcing: Destination Canada'
July 21, 2005- 'Global Outsourcing: Destination The Philippines'
August 31, 2005- 'Global Outsourcing: Destination China'
September 29, 2005- 'Global Outsourcing: Destination Eastern Europe'
October 27, 2005 Global- 'Outsourcing: Destination Malaysia'
November 30, 2005 Global- 'Outsourcing: Destination Latin America'


neoIT’s Eugene Kublanov & noted offshoring legal and tax experts Baker & Mckenzie will host a series of Free Global Outsourcing Seminars

Download the Brochure

Brazil Outsourcing 2005
 

July 7 - 8, 2005
Rio di Janiero, Brazil


Eugene Kublanov, neoIT Vice-President (Corporate Development), will present on The Globalization of Services: 2005 and Beyond, on July 8, between 9.30 am and 10.30 am.

The CIO Decisions Conference
 

July 26 - 28, 2005
Pebble Beach, CA


Atul Vashistha, neoIT CEO and Stephen Nordahl of Milbank, Tweed, Hadley & McCoy LLC, will co-present on the topic of Managing the Outsourcing Lifecycle.

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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
Thinking Offshoring Through
The Services GlobalizationSM Handbook
Top
neoIT in the News
  Deloitte Report Casts Shadow Over Outsourcing Boom
  The Financial Express,
May 2005
  Contradicting this, Sabyasachi Satpathy, director-research, neoIT — offshore advisory and management firm, said that outsourcing is going to stay...
 
  Why Mexico is an Attractive BPO Site
  The Economic Times,
May 2005
  According to an analysis by neoIT, a global outsourcing consultant, offshore service providers gain an upper edge when it comes to lower costs and high skills...
 
  Medical Transcription is Only the Beginning
  The Financial Express,
May 2005
  The trend seems to be shifting, and German and French companies are accelerating their outsourcing/offshoring efforts to catch up with US and UK firms,” says Eugene M Kublanov, vice-president, corporate development, neoIT, a consulting firm...
 
  Is the Canadian Stealing Your BPO Job?
  The Economic Times,
May 2005
  According to neoIT, a global outsourcing consultant, the US and Canada share the world’s largest trade partnership...
 
  Don't Export Security
  CSO Magazine,
May 2005
  I'd say fewer than 20 percent of my clients audit the security of their providers," says Atul Vashistha, CEO of neoIT, an offshore outsourcing consulting company...
 

Opinion Poll
  Recent report from Delloite claims that India is going to lose its preference as BPO destination?
 
     
View results

View Editorial comments on the April Opinion
Poll
s
Resources
  INDIA: National Association of Software and Service Companies (NASSCOM)
  India's National Association of Software and Service Companies, Nasscom is the apex body and umbrella organization for IT Software and Services industry in India. The member companies of Nasscom are in the business of Software, IT Services, Internet, E-commerce and IT Enabled Services. Thus Nasscom is not only a Chamber of Commerce, but also a single point-reference on any information on IT and Services and Industry in India.
 

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