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Welcome to the September 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.
Outsourcing allows firms to focus on what they do best. Suppliers can
specialize in their particular business process or function, passing the
advantage of that specialization on to their clients, while the outsourcing
organization can in turn focus on its core competencies. The results are
improved business processes and functions, and lower costs of operation across
the board.
Considering these broad objectives, this month’s whitepaper features a
selection of common outsourcing destinations and their relative advantages and
disadvantages, as well as the complexities involved in selecting the best
offshore destination.
Based on neoIT’s ongoing research, client advisory experience at various stages
of the outsourcing process, and a comprehensive understanding of global
sourcing, the neoIT Offshore Attractiveness Index has been developed to rate
each location’s characteristics, thus arriving at a rank for that destination
as an outsourcing location. The Index is designed to enable clients to make
more informed decisions on where to outsource.
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| Offshore Sourcing Articles
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Mapping Offshore Markets Update 2005  |
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By neoIT
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Overall, India and Canada retain their dominant position in the
ITO and BPO industries. However India's weaknesses in certain segments have
resulted in opportunities being exploited by newer offshoring destinations.
Poland, for example has shown remarkable growth as an outsourcing destination
in both ITO and BPO.
neoIT predicts that the third wave of outsourcing will give rise to newer
offshore destinations that can carve out a niche to gain significant
competitive advantage as well as develop ICT clusters for long term sustenance.
The growing acceptance of services globalization by non-English-speaking
countries is fueling the emergence of a parallel outsourcing landscape - BPO.
In light of these developments, the outsourcing industry, in all likelihood,
will spread its wings and enjoy a global presence...
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Ensuring India’s Offshoring Future |
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By Mckinsey
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Clouds are gathering on the offshore horizon. Research by the
McKinsey Global Institute (MGI) shows that India's vast supply of graduates is
smaller than it seems once their suitability for employment by multinational
companies is considered. In the country's most popular offshoring locations,
such as Bangalore, rising wages and high turnover among engineers— the
professionals most in demand for IT services— provide evidence that local
constraints on the supply of talent already exist. And just as these
bottlenecks are developing, other low-wage countries, such as China, Hungary,
and the Philippines, is gearing up to challenge India's lead.
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| Industry Research and Case Studies |
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| Special Events |
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Baker &
McKenzie-neoIT Global Outsourcing Webinar Series
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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
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AAMA Connect 2005 - The China Playbook: Executive Insights and Strategy for the
Technology Economy
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October 4 – 5, 2005
Santa Clara, California
Atul Vashistha, neoIT CEO, will participate
in the panel discussion on Outsourcing in India vs. China.
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Outsource World New York
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October 18 - 19, 2005
Metropolitan Pavilion, NYC
Atul Vashistha, neoIT CEO, will be speaking
on Successful Habits of Highly Effective Outsourcing Firms.
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4th Annual BITS/American Banker Financial Services Outsourcing Conference
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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.
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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.
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What’s new in the OKC |
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Opinion Poll |
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Will Captive players rule the IT/BPO market?
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neoIT in the News |
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Indian Workers Get Wage Hikes in Asia
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BusinessWeek & Forbes.com,
September 2005
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"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."
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New Reasons To Do It
Yourself
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Computerworld,
September 2005
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"The build argument is becoming more viable because people are
feeling very comfortable with the maturity of offshore operations," adds Atul
Vashistha, CEO of neoIT., a consulting firm in San Ramon, Calif.
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Preaching What They
Practice
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Business Standard,
September 2005
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Points out Avinash Vashistha, managing partner at San Ramon
(Calif.)-based offshore advisory firm neoIT… as (Indian) IT companies try to
move up the value chain, clients are asking whether you have a wider knowledge
of their businesses like the Accentures of the world. You need a consulting arm
to convince them."
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Outsourcing Journey Starts With "Why"?
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SearchCIO.com,
August 2005
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"Before you begin the process, it is important to figure out if
global outsourcing is right for you. Why are you looking at? What part of your
business strategy does this actually address, and if it is right, are you ready
to take it on," said Atul Vashistha.
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MNC's Poach, Indian Companies Feel the Heat
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The Times of India,
August 2005
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A study by neoIT found that IT salaries in India experienced the
most significant growth compared to other offshore/near shore destinations in
2004.
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Captive Players Rule in BPO Market
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The Financial Express,
August 2005
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The trend is likely to continue for the next 3-5 years. Said
Avinash Vashistha, chairman, neoIT, a global BPO consultancy: “Companies are
wary of outsourcing their core business because of the risk, so they prefer
setting up captive centres. The IT industry will especially witness captive
centres being set up as technology is core to their business."
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UK Keen to Cash in on BPO Boom in India
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The Financial Express,
August 2005
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According to Avinash Vashistha, chairman, neoIT, a global BPO
consultancy: “Companies are wary of outsourcing their core business because of
the risk, so they prefer setting up captive centres. The IT industry will
especially witness captive centres being set up as technology is core to their
business."
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Resources |
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RUSSIA:
RUSSOFT
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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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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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