Welcome to the October issue of Offshore Insights!
Today, offshore outsourcing accounts for nearly 10% of the $536 billion Global
IT services and BPO industry1. However, there are some fundamental differences
between the traditional onshore outsourcing models and the global delivery
model (offshore outsourcing), that significantly impacts planning, sourcing,
and management of effective offshore operations. Offshore outsourcing brings in
a whole new set of dynamics so radically different from onshore or nearshore
outsourcing. What are the key differences that enterprises should be aware of
when comparing the traditional onshore outsourcing and the offshore outsourcing
model? Why do the same approaches not work for both onshore and offshore
outsourcing?
We are tracking the offshore outsourcing space to give you updated news, views
and trends to add value to your offshore outsourcing decisions. This month, we
discuss the differences between onshore and offshore outsourcing.
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| Offshore Sourcing Articles
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Onshore vs Offshore Outsourcing  |
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By neoIT
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What differentiates offshore outsourcing from onshore
outsourcing? English speaking IT graduates, low wage structure, an attractive
labor pool, quality of delivery, speed of business and flexibility in business
operations. Offshoring is becoming a critical component of every company’s IT
budget. But what are the differences in financial models, operational models,
risk factors and sourcing methodologies that buyers need to know? This article
compares and contrasts onshore with offshore outsourcing and best practices to
be followed for maximizing ROI.
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| Industry Research and Case Studies |
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| Special Events |
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The 2003 India Outsourcing Summit
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October 15-16, 2003
The Leela Palace, Bangalore, India
Understand how to do business in India, its unique requirements and culture,
how to compare India to other offshore destinations, and how to make and manage
your company’s India sourcing strategy.
**neoIT CEO, Atul Vashistha, will discuss India as an
Offshore Destination.
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The 2003 China-America Outsourcing Business Development Summit
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October 18-20, 2003
Beijing, China
With a 2000 GDP of US$1.08 trillion China is the world’s sixth largest economy.
Many US companies have made significant investments in their Chinese
operations. All of GE’s businesses are now operating in China with total
investments over US$1.5 billion.
**neoIT CEO, Atul Vashistha, will discuss Emerging
Outsourcing Trends in the Chinese Market.
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The Legal and Business Guide to Offshore and Global
Outsourcing
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October 29-30, 2003
New York, NY
While many enterprises have experience with outsourcing domestically, this
knowledge is not enough when entering into agreements with providers abroad.
Learn practical strategies for structuring agreements and minimizing legal and
business risks.
**Offshore advisor, Cliff Justice, will discuss Project
Parameters: Establishing the Objectives and Structure of Offshore Outsourcing
Agreements.
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SIG’s
Sourcing Leadership 2003 Conference
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October 28-31, 2003
Scottsdale, AZ
The Sourcing Interests Group’s 24th semi-annual conference will focus on
outsourcing business processes, IT and the offshore outsourcing market. SIG’s
conferences are acclaimed by many as the world’s top sourcing event for C level
executives and their direct reports.
**Chevron-Texaco and neoIT will co-present on Creating an
Offshore Roadmap.
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The 14th Annual Compete Through Service Symposium
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November 5-7, 2003
Phoenix, AZ
This W. P. Carey School of Business Center event focuses on services
leadership.
**neoIT CEO, Atul Vashistha, will co-host the event.
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Business Process Outsourcing Asia 2003
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December 2-3, 2003
Oriental Hotel, Singapore
The emergence of new BPO service business models - Insourced, outsourced,
off-shore outsourcing to shared services and joint ventures formed between the
customer and the providers is taking the vendor/partner relationship to a more
complex level.
**Atul Vashistha to speak on "India as a hot favorite
outsourcing hub for global corporations".
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| Offshore Knowledge Center |
Visit
Offshore Knowledge Center to learn more about global and offshore
outsourcing. Examine best practices on the full lifecycle of offshoring from
assessment and due diligence to transition, on-going management and analysis.
You will find reports written by respected industry analysts, offshore articles
from around the Web, and other important resources, such as newsletters and
presentations.
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What’s new in the OKC
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neoIT in the News |
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US Healthcare Firms Look Offshore
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September, 2003
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High costs and obsolete processes are driving US healthcare
companies to offshore work. Forty percent of US medical companies outsource
today. They will come to India to save at least 25% of total costs, says neoIT
MD Avinash Vashistha.
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Outsourcing Wagon Hits Home Hurdle, Fails to Keep India Date
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September, 2003
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It’s been nine months and these large deals are yet to
materialize. This is because many of these companies have dropped their
outsourcing plans or have decided to outsource only a very small portion
compared to their earlier plans, says neoIT MD Avinash Vashistha.
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When
Elephants Fly
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September, 2003
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As more companies plunge into more ambitious projects in India,
the “train wrecks” will start by next year. As with any fad moving too fast,
accidents are bound to happen, says Avinash Vashistha, MD, neoIT.
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The Bottom Line
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September, 2003
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Established tech companies that aren't offshoring right now are
'shrinking'... offshoring will eventually result in more opportunities for U.S.
workers down the line, says neoIT CEO Atul Vashistha.
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Call Centers Forced To Shut Shop
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September, 2003
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Do-not-call lists are serious, you can't get away from them.
Many smaller players in the market have no systems in place to ensure they
don’t end up calling a do-not-call number… While small companies will shift
their work from telemarketing to non-voice BPO work, big players will adapt to
the lists, says Avinash Vashistha.
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Offshore security: Considering the risks
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September, 2003
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Information security for U.S. clients is part of the cost of
doing business offshore, says Avinash Vashistha. The first thing we do is a gap
analysis, to find gaps between existing security policies and what will be
required for offshore, says neoIT's offshore security advisor Manoj David.
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neoIT Income Up 194 pc
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September, 2003
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Helping our customers achieve offshoring success is the key to
neoIT's positive results and is an indicator of our growth prospects, says Atul
Vashistha.
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Press release also appeared in: Business Standard; Wachovia Capital Markets LLC; Reuters; Dow Jones.
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Opinion Poll |
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What component of your IT budget do you
allocate for offshore outsourcing?
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Resources |
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WITSA
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The World Information Technology and Services Alliance (WITSA)
is a consortium of 46 information technology (IT) industry associations from
economies around the world. WITSA members represent over 90 percent of the
world IT market.
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SBPOA
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The Shared Services and Business Process Outsourcing Association
(SBPOA) is a membership organization for executives, managers, consultants,
administrators, and educators, with a professional interest in gaining a better
understanding of what it takes to setup and lead best-in-class Shared Services
or successful BPO activities.
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Your Space
(Readers write-in) |
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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
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write to
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Note: Articles will be edited for content and length.
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Email your comments and
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