Volume 3 Issue 9 October 2005
Articles | Research | Events | Knowledge Center

Welcome to the October 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 increasing demand for ITO and BPO services has opened opportunities for emerging ITO and BPO destinations such as India, the Philippines, China, and Russia to improve and expand their services offerings. To accommodate these expansions, countries are focusing on creating clusters of excellence – concentrated locations where ITO and BPO service centers are located – in multiple locations within their borders. These centers of excellence are designed to optimize the four key parameters important to outsourcing firms: cost, control, quality, and risk.

This month’s whitepaper Outsourcing to the Philippines: Metro Manila and Beyond is a result of neoIT’s continuous research dedicated to providing our clients with valuable insights on various offshore outsourcing destinations. In this research summary, we provide critical information about the emerging cities in the Philippines that hold promise for IT and BP outsourcing.

 
Offshore Outsourcing Articles
Outsourcing to the Philippines: Metro Manila and Beyond
  By neoIT
 

Last months white paper, Mapping Offshore Markets 2005 highlights the world’s prominent nearshore and offshore destinations for Information Technology (IT) and Business Process (BP) outsourcing. According to this paper, the Philippines ranks second to India as a BPO destination and has the long term potential to challenge India’s dominance especially in the BPO segment

This month’s whitepaper goes beyond the Philippines country’s capital city, Metro Manila, which has long dominated the country’s other cities as an outsourcing destination. It brings to light eight other cities that have emerged to not only complement but also contend with Metro Manila as viable outsourcing destinations. More importantly, as demonstrated in this whitepaper, is the ability of these cities to continue to improve their services competency which will greatly impact the Philippines’ overall performance vis-à-vis India and improve it’s viability as a key outsourcing destination in the global BPO market.

Is Outsourcing Part of the Solution to the Higher Education Cost Dilemma: A Preliminary Examination
  By Institute for Higher Education Policy
 

The report provides a review of the relatively small amount of existing information about the extent to which colleges and universities turn to outside vendors to do tasks traditionally done by employees. It finds (based in part on surveys done by the National Association for College and University Business Officers and other groups) that most colleges have turned to private entities to perform at least one function, in areas such as bookstores, food services and technology, and that the use of outsourcing is on the rise

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Industry Research and Case Studies
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.

The China Reality Check
  By neoIT
 

At the end of April 2005, neoIT conducted a China Knowledge tour and visited 16 leading offshore IT services suppliers spanning the markets of Shanghai, Beijing and Dalian. The trip was extremely informative as it allowed better appreciation of the facilities and capabilities of the Chinese IT services companies. The visit also facilitated an evaluation of the state of infrastructure in various parts of China and an assessment of the demand and market trends for IT offshore services from the western world.

Top
Offshore Outsourcing Events
Baker & McKenzie-neoIT Global Outsourcing Webinar Series
  October 27, 2005 Global Outsourcing: - 'Destination Malaysia'
November 30, 2005 Global Outsourcing: - 'Destination Latin America (Argentina, Brazil, and Mexico)'

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

Download the Brochure

4th Annual BITS/American Banker Financial Services Outsourcing Conference
 

November 7 - 8, 2005
The Renaissance, Washington D.C.

Atul Vashistha, neoIT CEO, will share his perspectives on how to achieve the delicate balance of risk, control, outcomes and board-level involvement in the global outsourcing environment.

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.

HRO World Europe
Transforming HR to contribute to the organization’s bottom line

November 14 – 16, 2005
Conrad Hotel, Brussels, Belgium

The 2005 HRO World Europe Conference will follow on last year's success and will be the place to truly understand how HR outsourcing will impact you and your business. HRO World Europe is the only event that lets you build the strategy that is right for your organization - with you leading the process and strategically aligning your HR activities with your organization's business objectives. Designed for executives of HR, finance, benefits, payroll, recruitment, IT, and operations, HRO World Europe is the place to learn how to turn your HR organization into a strategic asset and provides answers on the what, how, and when of HR outsourcing.

neoIT and the organizer of HRO World Europe has teamed up to give you a special "Friends of neoIT 20% Off Discount" for the event. To take advantage of this discount, please register for the event here.


For more information about the conference, click here.


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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
Top

Opinion Poll
 
Will Indian IT majors challenge the supremacy of global consulting firms?

 
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View Editorial comments on the September Opinion
Poll
neoIT in the News
  Indian Workers Get Wage Hikes in Asia
  BusinessWeek,
September 2005
  "Salary increases are happening in four or five large Indian cities," said Avinash Vashistha, who heads neoIT, an outsourcing consulting firm in Bangalore. "There is a 20 or 30 percent saving in moving to smaller cities. So companies will try to counter wage increases by moving work to these destinations."
 
  India, Canada, and China are Top Outsourcing Destinations: Study
  InformationWeek,
September 2005
  "U.S businesses looking to place their technology operations offshore should give strongest consideration to India, Canada, or China, according to a report released Tuesday by outsourcing consulting firm neoIT"
 
  The 411 on China
  CIO Magazine,
September 2005
  And much of the reason CIOs might choose China today is "not necessarily for labor quality, but because it's a buyer's market," according to a 2004 report from San Ramon, Calif.-based offshore consultancy neoIT.
 
  Outsource From the Start
  Red Herring,
September 2005
  "India is the top destination for outsourced product development for software startups, but other emerging outsourcing hotspots include China and Eastern Europe, says Eugene Kublanov, vice president for corporate development at neoIT, an offshoring consultancy in San Ramon, California.
 
  Offshoring Commentary with neoIT
  Outsourcing TV,
September 2005
  neoIT CEO Atul Vashistha and vice president Eugene Kublanov discuss neoIT's Offshore Attractiveness Index and other factors weighing on offshoring location selection
 
  Beyond Software India Eyes Microchips
  Reuters,
October 2005
  Avinash Vashistha, managing director of independent outsourcing consultancy neoIT said it would take India a long time to compete with Taiwan, but added that the presence of Indian fab can drive demand for design services related to it.
 
  An Offshoring Juggernaut Looks Beyond IT
  Consulting Magazine Online,
September 2005
  Vashistha: Certain things have definitely changed. For example, I wouldn’t refer to it as offshoring anymore. It’s more about globalizing services, because companies are looking at it for more than just one location and more than just one process
 
  neoIT's Take on Offshore Markets
  Sourcing Magazine,
September 2005
  If you’re in charge of sorting through your company’s plans for offshore IT or business process outsourcing (BPO) work, run -- don’t walk -- over to this site and download a copy of “Mapping Offshore Markets Update 2005,” by neoIT
 
  Central European Threat Looms Large Over Indian IT
  The Times of India,
September 2005
  "India’s cost competitiveness, highly-skilled labor pool, established service maturity and the ability to evolve with changing outsourcing environment will ensure that we remain a favored destination for years to come," says Sabyasachi Satyaprasad, research director, neoIT.
 
  The Offshore Nation reviewed on Power Lunch
  NDTV Profit,
September 2005
  Avinash Vashistha, managing partner neoIT and co-author says : "The key aim for this book is to provide a strategic perspective- how offshoring is shaping the minds of CEO's and also how the managers who are making things work offshore, can actually achieve success in this arena...
 
Resources
  Malaysia: Multimedia Development Corporation
  A high-powered ‘one-stop agency’, focusing on ensuring the success of the Multimedia Super Corridor (MSC) and the companies operating in it. This includes the Shared Services and Outsourcing (SSO) initiative, representing organizations undertaking ITO, BPO, KPO as well as industries and agencies involved in its development...
 

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