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Welcome to the June 2006 issue of
Offshore 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.
One of the biggest trends in business today is global sourcing and of course
the biggest reason for global sourcing is the cost savings, which can be
significant. Last year’s salary report provided an assessment of the costs
saving potential that offshore/ nearshore destinations enjoyed. The report also
provided insights into the factors that influenced the savings potential of
these destinations.
Today organizations are faced with an ever growing basket of choices when
tapping into global destinations. More than simply the tactical outsourcing of
basic tasks to drive down costs, global sourcing is now being perceived as a
business strategy built around the relocation of work and talent to the
locations that offer the most persuasive value proposition including reduced
labor costs, access to high end skills, and enhanced productivity.
This year’s salary report titled ‘Offshore and Nearshore ITO/BPO Salary
Report’, gives a good idea of how organizations can take advantage of the low
cost structure across several global destinations and benefit from their
sourcing decisions by adopting a ‘portfolio approach’ to offshoring. This
year’s report, for the first time, also provides data on BPO salaries in
addition to IT salaries and assesses the costs savings potential of newer
offshoring destinations as well.
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Offshore
and Nearshore ITO/ BPO Salary Report 2006
By neoIT
This annual information technology and business process outsourcing salary
report recaps outsourcing salary data for 2005 and provides information on the
key trends for offshore and nearshore outsourcing destinations, identifying
criteria for evaluating cost structures. Topics addressed in the study include:
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Factors beyond cost structure
that drive sourcing decisions |
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Optimizing the balance of
offshore versus nearshore decisions |
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Latest global sourcing salary
trends |
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Balancing rising salaries in
mature nearshore and offshore destinations with emerging, lower cost, offshore
destinations |
While India, China and the Philippines have long dominated the IT & BPO area,
new centers of excellence are emerging in Eastern Europe and Latin America.
Given the increasing capabilities across all offshore destinations, the impetus
for services globalization goes beyond labor costs.
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Offshore
Readiness of SEE Countries
By neoIT
In this whitepaper, neoIT looks at Romania, Bulgaria, Slovenia and Croatia’s
readiness as supply-side services globalization destinations and rank each
country’s offshore readiness. Through the use of the “Offshore Readiness Index”
the report provides useful assessments of each country’s strengths, weaknesses
and general state of readiness for global sourcing. Of the four countries
Slovenia appears to be the most offshore ready, while Croatia was ranked the
least offshore ready.
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Services GlobalizationSM: Emergence of a New Driver for Business
Agility
By neoIT
The maturation of services globalization stems from offshore outsourcing, and
results from the combination of economic maturity, free trade across borders,
and the emergence of centers of excellence around the world. Services
globalization can help companies with a flexible business model seize
opportunities and dodge obstacles to business success, thereby providing a
competitive advantage. By leveraging services globalization companies can cut
costs by having processes performed by service providers that can perform them
more efficiently; can improve quality by sourcing talent throughout the world;
and can increase its growth by taking advantage of labor pools wherever they
may be located.
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Global
ITO and BPO trends for 2006
By neoIT
Offshore IT outsourcing - is it a viable option to onshore outsourcing?
Discrete outsourcing - is it a preferred sourcing strategy? Will established
providers be able to continue to command premium pricing? Tactical vs.
Transformational approach to offshoring - What are clients really looking for?
Are their any shifts in the values that are being sought from engagements?
Supplier markets - which are the emerging ones? Is China really a threat to
India?
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| Offshore Outsourcing Events |
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2006 Global Services Conference
February 2, 2006 - New York, NY
Workforce globalization isn't just a matter of economic necessity - it's about
seizing opportunities to expand into new markets and gain a competitive edge.
Today's business and technology executives invest vast amounts of time and
resources assessing their organization's core skills, determining the "make"
versus "buy" paradigm and ultimately, sourcing and managing service provider
relationships.
In a jam-packed day filled with thought-leaders, peer discussions, workshops
and real-world case studies, the 2006 Global Services Conference broke new
ground in providing content to help decision makers determine the best ways to
approach workforce globalization
Watch the Trailer 
Speaker:
Vivek Paul, Partner and Managing Director,
Texas Pacific Group
Speaker Topic: Through the Looking Glass
Watch the Presentation Video (Length: 28 min)
Speakers:
Atul Vashistha, CEO, neoIT and Conference Chair
&
Charlie Cortese, Managing Director, Lehman
Brothers
Speakers Topic: 5 W's of Services Globalization Strategy: What, Where, When,
Why and Who.
Watch the Presentation Video (Length: 48 min)
Speakers:
Pavan Chahal, Managing Director, neoIT,
J. Ross Docksey, Partner, Sonnenschein Nath &
Rosenthal &
Dave Bass, Manager Applications Development,
Time
Speakers Topic: Practical Aspects an Organization should consider during the
Sourcing Process
Speaker:
Chas Mullins, Managing Director, neoIT &
Bill Metz, External Business Development
Manager, Procter & Gamble
Speaker Topic: Governance and Relationship Management in Offshoring
Watch the Presentation Video (Length: 33 min)
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Baker
& McKenzie-neoIT Global Outsourcing Webinar Series
June 21, 2006 - Webinar
Suresh Gundappa, neoIT Senior Director, will
speak on the topic "Global Sourcing: Destination Australia"
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Outsourcing Forum Midwest
September 11 - 12, 2006
Chicago, IL
Gary Schneider, neoIT Managing Director, will
speak on the topic "Transformation through Services Globalization".
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People around the globe are more connected to each other than ever before and
the economic and social changes resulting from our increasingly globalized
world are dramatically shaping our future. While these changes hold
unparalleled potential, poverty, illiteracy, and other social conditions keep
millions from enjoying the benefits of a globalized world, particularly the
three billion people – nearly half of the world’s population - who live on less
than $2 a day. This year, neoIT will partner with
World Education, a nonprofit organization using education to address
literacy, health, economic, and civic development in 26 countries.
World Education brings a 50 year track record of building the skills,
talents and confidence of people and communities to take charge over their own
futures. We invite you to join in us in supporting World Education’s work. To
learn more about World Education, please visit
www.worlded.org
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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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IT Companies Plan Brand New Start to Woo Global Honchos
Economic Times,
May 2006
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Says neoIT vice-president Eugene Kublanov, ``If a client has to implement, say,
Oracle solutions in 50 countries, it may go beyond the capability of Indian
companies. So brand enhancement for Indian IT players is a must if they want to
develop deep relationships with clients.
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Atul Vashistha, CEO, neoIT, among world's 25 most influential consultants
Domain-b.com,
May 2006
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Consulting Magazine has named Atul Vashistha, founder and CEO, neoIT, as one of
the consulting industry's "Top 25 Most Influential Consultants 2006".
Consulting Magazine, published by Kennedy Information Systems, is the flagship
publication of the consulting profession, featuring information on consulting
careers, thought leadership and corporate strategies
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Global Retail Picks B'lore as Back Office
Economic Times,
May 2006
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Says Eugene Kublanov, VP, neoIT, (a consultancy), “Retail offshoring for both
IT services and BPO is set to boom - Retailers are coming here not only to save
costs but also to do some ground work prior to the local market opening up. For
retailers like Tesco and Target it’s not just a cost-saving strategy, but also
an opportunity to study the local market and engage with local resources.”
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The Seven Deadly Sins of Outsourcing
Computerworld,
May 2006
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Atul Vashistha, CEO of neoIT Inc. in San Ramon, Calif. said "If they'd (large
retailer) had a governance plan with milestones in place, they would have
realized early on that targets weren't being met."
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Offshoring
the Offshorers
Forbes,
April 2006
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| India reaped new fortunes
in its recent rise as an outsourcing powerhouse. But now India hears footsteps:
China, the Philippines, Hungary, the Czech Republic and several Latin American
countries are luring offshore outsourcing jobs as well. The surprise: some of
India's offshoring giants are offshoring themselves, fueling the next round,
and U.S. firms are joining in.
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| International
Association of Outsourcing Professionals (IAOP)
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| The International
Association of Outsourcing Professionals (IAOP), the field’s first truly global
professional membership organization helps companies increase their outsourcing
success rate, improve their outsourcing ROI, and expand the opportunities for
outsourcing across their businesses.
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more about neoIT |
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