What is Outsourcing?
Study Shows most Outsourcing Players do not Manage Associated Risks
by: Karen Cayamanda
Thursday, July 15, 2010 | Outsourcing Research / Trends | Comments (0)
In a survey recently conducted by learning-based solutions provider ESI International, it was found out that more than half of outsourcing buyers and service providers are not able to effectively manage associated risks.
Out of the 615 respondents from North and South America, UK, Asia, Middle East, and India, 55 percent said their company is “not very effective” or “somewhat effective” when it comes to risk management. Thirty-five percent said their organization is “effective” and six percent noted that they are “extremely effective” in assessing the risks associated with outsourcing.
The study also reveals that only one-third of organizations define their financial goals to outsourcing partners, while 32 percent said they fail to continually assess outsourced work based on the goals they have set.
“With nearly two-thirds of organizations spending up to half of their budgets on outsourcing, there is a need to refine risk management capabilities in order to positively impact bottom line performance,” ESI International said.
Source:
http://www.property-casualty.com
The 25 Most Dangerous Outsourcing Spots in 2010
by: Karen Cayamanda
Friday, June 11, 2010 | Outsourcing Research / Trends | Comments (0)
In the annual survey conducted by the Datamonitor Group on the riskiest cities for offshore outsourcing, industry buyers and corporate development leaders ranked Karachi, Pakistan as the most dangerous outsourcing location, followed by Medellin, Colombia, and Juarez in Mexico. According to an article by Stephanie Overby, the said cities were labeled as such because of crime rates, corruption, geopolitical risk, and terrorist threats.
Last year, Manila, Philippines was included in the list of riskiest outsourcing locations, but managed to move out of the list as successful service providers gave some positive light to the outsourcing hub.
The 25 Most Dangerous Cities for Offshore Outsourcing
1. Karachi, Pakistan
2. Medellin, Colombia
3. Juarez, Mexico
4. Cali, Columbia
5. Tijuana, Mexico
6. Lahore, Pakistan
7. Jakarta, Indonesia
8. Lagos, Nigeria
9. Dhaka, Bangladesh
10. Chittagong, Bangladesh
11. Amman, Jordan
12. Khulna, Bangladesh
13. Faisalabad, Pakistan
14. Rawalpindi, Pakistan
15. Port-au-Prince, Haiti
16. Managua, Nicaragua
17. Chihuahua, Mexico
18. Ljubljana, Slovenia
19. Tashkent, Uzbekistan
20. Bandung, Indonesia
21. Kingston, Jamaica
22. Tel Aviv, Israel
23. Colombo, Sri Lanka
24. Johannesburg, South Africa
25. Accra, Ghana
Source:
http://www.networkworld.com
US IT Spending to Bounce Back this Year
by: Karen Cayamanda
Wednesday, April 14, 2010 | Outsourcing Research / Trends | Comments (0)
After a five percent decline in 2009, the US IT services market is poised to recover this year and will reach $79 billion. This is according to a report from Forrester Research.
IT consulting remains to be the strongest segment in the US IT services, followed by hardware support/sales and system integration business.
“The cutbacks in tech purchases were in many cases driven by fear. Fear that the economy was headed toward a multiyear recession... and fear that firms would not be able to borrow from banks or the credit market if they needed, resulting in the drive to hoard cash and slash capital investment... As fears ease and prices rebound, the pent-up demand in those industries for IT goods and services will bounce back in 2010,” said the Forrester report.
Forrester report findings matched the projections of research firm Gartner on the global IT spending market, stating that it will grow 5.3 percent this year and will hit $3.4 trillion.
Source:
http://www.dnaindia.com
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/