What is Outsourcing?
IT Outsourcing Rises but Offshoring Falls, UK Survey Shows
by: Karen Cayamanda
Wednesday, March 31, 2010 | Outsourcing News | Comments (0)
In a survey by PeoplePerHour.com, Europe’s biggest online business marketplace, results show that 60 percent of UK-based companies outsource business processes more now than they did two years ago, and 61 percent choose IT outsourcing over offshoring.
More companies choose outsourcing in order to reduce costs during the recession. However, the decrease in the number of companies which are willing to transfer processes overseas can be attributed to the rise in the “freelance economy” which has become an attractive alternative in the UK as well as the growing number of IT professionals.
“You might have expected offshoring to grow through the recession as UK businesses looked to cut costs by outsourcing IT requirements to cheaper overseas suppliers. However, responses to our survey and analysis of transactions on the site points to one conclusion: outsourcing is growing and offshoring is falling,” said PeoplePerHour.com founder Xenios Thrasyvoulou.
Source:
http://www.onrec.com
Companies could Save £60,000 through Back Office Outsourcing
by: Karen Cayamanda
Saturday, March 27, 2010 | Outsourcing News | Comments (0)
According to InsideOut, outsourcing specialists to the recruitment sector, more and more companies are considering back office outsourcing. Instead of handling back office functions in-house, transferring those to a service provider can translate into savings of about £60,000 a year.
As the economy bounces back from recession, outsourcing back office processes is an economical option for recruiters, and will enable them to focus on core tasks. “Employing a couple of people in your accounts department means not only is there the cost of salaries, but also training, office space, office supplies and infrastructures like IT,” said Paris Sheppard, InsideOut Managing Director. “For around £10,000 a year, recruiters could be outsourcing their payroll and invoicing and not only saving money on paying salaries.”
Source:
http://www.personneltoday.com
Gartner Reports 2010’s Top 10 BPO Locations in Asia Pacific
by: Karen Cayamanda
Friday, March 26, 2010 | Outsourcing News | Comments (0)
India is still the number one location of choice for offshore IT and business process outsourcing (BPO) services, followed by China. This is according to the latest research “10 Leading Locations for Offshore Services in Asia Pacific and Japan for 2010” by global IT research and advisory firm Gartner. Australia, New Zealand, Singapore, Malaysia, Indonesia, the Philippines, Thailand, and Vietnam also made it to the top 10 list.
“Countries such as Malaysia, the Philippines, and Vietnam have continued to strengthen their position against leading alternatives, while Indonesia has entered the top 10 for the first time,” said Jim Longwood, Gartner research vice-president. “Some of these countries have invested considerably and leveraged increased demand for lower-cost services. The global financial crisis forced many organizations to place a greater emphasis on cost optimization.”
These countries were ranked based on the following factors: language, government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, globalization and legal maturity, and data and intellectual property security and privacy.
Source:
http://www.gartner.com
Indian BPOs to Benefit from US Healthcare Reform
by: Karen Cayamanda
Thursday, March 25, 2010 | Outsourcing News | Comments (0)
As the US House of Representatives passed the healthcare bill that will bring about 32 million Americans under insurance cover once it becomes a law, it is expected that work such as insurance and claim processing tasks will be transferred to Indian BPO service providers. Insurance companies will be looking for outsourcing service providers that will take on back-office tasks including member database management, claims and new member enrollment processing, and support services.
‘‘All existing IT systems including the electronic medical records, patient information systems and other technology platforms are going to stay untouched, barring some minor to medium tweaking, which will mean some additional work for existing providers like IBM, Accenture and EDS (HP). It's possible that minor portions of these might get shifted to India as well, but the sizable opportunity is for BPOs,” said Dr. Saji Salam, healthcare expert in Minneapolis.
Source:
http://timesofindia.indiatimes.com
UK Firms ‘Disappointed’ with Quality of Outsourced Work
by: Karen Cayamanda
Wednesday, March 24, 2010 | Outsourcing News | Comments (0)
Majority (75%) of UK organizations said they are disappointed with the quality of outsourced work. This is based on the research released by Valueshore Spain, Spanish Government-backed group of IT consultancies.
The research further shows that of the 200 UK IT directors surveyed, 78 percent still use day rates to calculate outsourcing costs, and that majority of organizations look at cost instead of quality of work when it comes to making outsourcing decisions.
Companies should change their perception of what offshore outsourcing can do for them. "Taking a cost-only approach can have a detrimental effect on the quality of work received. Businesses also need to open their eyes towards the 'hidden' costs. The cheapest option doesn't always provide to the biggest overall savings, as quality concerns can often result in more management time being required and increased travel and troubleshooting costs," said Daniel Naoum, co-founder of Valueshore Spain. By failing to consider the hidden costs, companies will lose opportunities for cost savings and pay an outsourcing bill that’s more expensive than what was initially planned.
Source:
http://www.freshbusinessthinking.com