What is Outsourcing?
Report Predicts Rise in Global Outsourcing Contracts in 2010
by: Karen Cayamanda
Monday, March 22, 2010 | Outsourcing Research / Trends | Comments (0)
As the economy recovers from the financial crisis, it is predicted that the number of global outsourcing contracts will increase this year due to acceptance to cloud computing, multi-sourcing, and focus on governance and risk management. However, these factors will also drive down value and duration of outsourcing projects. These findings are based on the Momentum Market Trends & Insights 4Q09 Annual Report by TPI, the world’s largest sourcing data and advisory firm.
"With the outlook of the global economy still uncertain, clients are clearly turning toward smaller, lower-risk transactions that focus on short-term cost savings," said John Keppel, Partner and Managing Director, TPI Research. The report further predicts that large contracts signed when the global economy was still stronger will be broken up and granted in smaller deals. This is also another factor that will boost the volume of outsourcing contracts this year.
Source:
http://www.prnewswire.com
New study confirms outsourcing's strong year in 2010
by: Carlo Abadilla
Friday, March 19, 2010 | Outsourcing Research / Trends | Comments (0)
After speaking with 1,055 senior executives involved in outsourcing services, CEO of Horses for Sources, Phil Fersht, published a new report confirming the positive outlook for the global outsourcing industry in 2010. Entitled, “The IT Outsourcing and Business Process Outsourcing Industry Landscape in 2010”, the study offers insights into which subsectors are most promising and the main drivers for outsourcing adoption.
The report reveals that software applications, call center, engineering management, finance and accounting, analytics, and human resources are the key areas to look out for this year. Mid-size companies were singled out as potentially creating the most activity.
According to the report, over 70% of small organizations (less than $750 million), about half of mid-size organizations (between $750 million and $3 billion), and nearly 60% of large organizations (more than $3 billion) said creating more effective operations at a global level was very important business driver behind their outsourcing decisions. Furthermore, 50% of firms surveyed said they are looking to expand their existing IT outsourcing partnerships.
Source:
http://advice.cio.com/
BPO executives voice concern over upcoming elections
by: Carlo Abadilla
Wednesday, March 10, 2010 | Outsourcing Research / Trends | Comments (0)
An industry survey conducted by TeamAsia for Outsource2Philippines and the Business Process Outsourcing Association of the Philippines (BPA/P) indicates that BPO executives believe credible elections are a critical factor that can shape investors' perception of the country, Manila Bulletin said.
Responding to the statement: “In terms of investor and client perception of the Philippines, it is important that the national election is conducted in a peaceful, credible, and transparent matter”, 90% of executives responded “very significantly” (49%), “significantly” (31%), or “somewhat significantly” (13%), and the remaining six percent responded “somewhat” (4%) or “not at all” (2%).
Many issues currently loom over the upcoming presidential elections as an automated voting process has raised concerns regarding a lack of audit trail, possible hacker intrusion, and reliability of data transmission.
The full results of the survey will reportedly be presented at a CEO Breakfast briefing two weeks before the election. The briefing will gather outsourcing executives and possibly representatives of presidential candidates.
Source:
http://www.mb.com.ph
Swedish outsourcing doubles
by: Carlo Abadilla
Wednesday, March 03, 2010 | Outsourcing Research / Trends | Comments (0)
Data from PAC's Worldwide Deal Tracker revealed that Swedish IT outsourcing contracts reached 46% in 2009 – double the 23% recorded the previous year, Waters News reported. The data covered all publicly disclosed IT service deals worldwide worth at least $1.35 million.
According to PAC London consultant, Dominic Trott, Swedish firms are becoming increasingly aware of the effectiveness of outsourcing non-core activities to offshore locations:
"The use of global delivery for IT outsourcing contracts in Sweden had been limited up until 2008, with challenges such as language difficulties and proximity to the customer preventing wider take-up," he said.
"However, the global economic crisis proved to be a significant disruptive factor for companies in Sweden, and the growing requirement for cost reductions meant that the issue was re-visited. The benefits available through global delivery, such as 24/7 support, labor arbitrage reductions and wider skill sets, were viewed as means by which efficiencies could be achieved."
The majority of outsourcing processes involved applications outsourcing - accounting for 65% of Swedish IT outsourcing contracts signed in the last two years.
Source:
http://www.watersnews.com