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Evolution of the Global Hub-and-Spoke Outsourcing Offshore Delivery Model
Evolution of the global hub-and-spoke model has evolved from visionary idea to standard best practice in FAO because some work has to stay local. David Bickerstaff and Paul Nowacki discuss why suppliers are adopting this new FAO offshoring model.
An Offshore Pioneer Shares Its Recipe for Long-Term Success
This was one of the first North American offshoring relationships. Nortel outsourced to India in 1991 because it couldn't find enough employees with the specialized knowledge it needed. At same time, Wipro wanted to expand beyond India. The timing was right for both partners to attempt something new. What's remarkable: both partners are still happy after 16 years!
How 1937 Economic Theory, Which Won a Nobel Prize, Helps Offshore Buyers Today
Ronald Coase won a Nobel Prize in Economics 70 years ago. That paper has value for offshore participants today. His theory explains why buyers that are not using English in their BPO transactions should consider switching and why suppliers that are going to succeed will have to invest in technology, process reengineering, and quality control.
When Outsourcing Back Office, It's All in the Family for Penske Truck Leasing
Sound familiar? Penske's customer service operations were in four US cities. They were expensive and didn't offer consistent service levels. What's the best way to consolidate cost effectively? Outsource the back office to India.
Thought Starter: Virtual Captives — An Emerging Trend?
Virtual captives not only provide the combined benefits of captive and third-party outsourcing models but also ensure the customer's higher degree of control over the offshore operations.
Seven Trends in Offshore Outsourcing for 2007 and Why They Matter: Offshore outsourcing is changing dramatically. Read about the changes and their implications for buyers and providers of outsourced services.
Lessons Learned From This Year's Awards
Editor Beth Ellyn Rosenthal, who conducted all the interviews, finds six recurring themes among the winners. The most surprising: offshoring actually created jobs for Americans.
Offshoring Helps Travel Outsourcer Develop Better Consumer Services and Remain Competitive
Almost every industry has to deal with the issue of legacy software. Do you keep it or replace it? With many of the legacy programmers retiring, a travel IT company looked offshore to fill the gaps.
Offshored Manufacturing Brings Inevitable Supply Chain Logistics Changes
When a company decides to send its manufacturing offshore, the greatest shock often surrounds the timely delivery of goods to its customers. Learn how to avoid unpleasant surprises to your supply chain when offshoring. (The secret is preparing for inefficiencies.)
Offshoring Infrastructure Services.....The Next Big Thing!
Cost reduction has been a driver for decades in the IT infrastructure space. Today suppliers have taken remote management one step further and introduced offshore into the solution. Frank Usher explains how to do it right to capture the most savings.
Bulgaria: Eastern Europe's Newest Hot Spot?
Bulgaria is boxing way above its weight. SAP is sending important IT work to its captive in Sofia. Did you know Bulgarian SAT scores rank second in the world? Read why North American and European companies are considering sending ADM work to Bulgaria.
How Offshoring Is Affecting US Real Estate Leased to Call Center Suppliers
The American press has dissected how the offshoring trend is affecting US employment. A new study by Jones Lang LaSalle shines a spotlight on how the trend is affecting US real estate absorption. It discovered US call center absorption is shrinking. The study shows where the rents are going.
Is Offshoring Demand Sustainable?
How much demand can the Indian providers handle? Will emerging supply-side constraints hinder their enviable growth? Sheetal Bahl of the Everest Research Institute studied the issue and has some answers.
Should Commercial Software Companies Create A Captive Or Outsource?
Should commercial software companies create a captive organization or outsource that work to an offshore provider? Sean Walsh of Symphony Services crunched the numbers and came up with an answer.
Nicaragua Wants to Become A Nearshore Hot Spot
Many of us remember watching the Iran-Contra hearings on TV. Over 400,000 nationals fled Nicaragua during the civil war; many settled in the US. Today they have returned home with an affinity for America and good English skills. Sounds like a good base for offshoring.
India Sees Performance-Linked Salary Hikes for Outsourcing Staffers in 2005
Employees of India's BPO suppliers enjoyed a 14.5 percent pay hike last year, according to a Hewitt Associates study. And this year will be even better for India's top-performing employees.
How Offshoring Can Create Jobs For Americans
The media reports how offshoring is putting Americans out of work. This is certainly happening. But David Andersen, a partner at Bryan Cave LLP, describes how offshoring not only saved jobs but also created them for his high tech clients.
Large Enterprises Cut Costs by 20 Percent through Broad-based HRO: Yankee Group Study
A new Yankee Group study found large companies who outsource multiple HR processes can reduce annual costs from $5,000 per employee to under $2,000. No wonder analyst Philip Fersht predicts multi-process HRO will grow significantly in the next 36 months.
Belarus Attempts to Become the Eastern European Bangalore
Inspired by Indian success, other countries are attempting to find their own niches in IT outsourcing. This story on Belarus is the second in a series on offshore locations other than India.
Why Indian Suppliers Are Moving to Tier 2 Cities
Labor pools and infrastructure in India's outsourcing hubs are under increasing pressure, causing suppliers to look at Tier Two cities. They have the talent pool and fewer infrastructural challenges, two benefits that could sway supplier sourcing strategies in the future.
Archstone Consulting/Duke University Offshoring Study: Respondents Reported 30 Percent Annual Savings
How much money do companies really save offshoring? This new study answers that question scientifically: 63 percent saved more than 30 percent and 14 percent banked more than 50 percent.
Key Offshoring Trends for 2005
Atul Khosla remains positive about India's predominance despite new challenges like the growing appreciation of the rupee against the dollar and increasing labor costs that threaten India's cost advantage.
How Outsourcing Facilitated a Sale
A major manufacturer wanted to acquire a niche company. But the buyer was unhappy with two aspects of its manufacturing process. Outsourcing removed both objections.
India Remains Optimistic About Growth, Momentum in 2005
This year the future is so bright the Indian suppliers need to wear shades. NASSCOM estimates the BPO sector alone will grow 40 percent and the IT-enabled services segment 60 percent. Here's why.
How Many IT Jobs Actually Went Offshore? And Where Did They Go? Frost & Sullivan's Study Finds Out
A new Frost & Sullivan report has the answer: Over the last three years the high-cost nations sent 826,540 IT jobs to developing countries, creating an install base of 7,599,540 IT jobs in the developing countries it studied. India got a lion's share of those jobs, but Poland was the fastest-growing offshore location for IT outsourcing. This comprehensive study supplies facts on offshore ITO. (2005)
India 2005: Facing the Challenges of Labor Shortage and Rising Wages
New reports clearly indicate that India remains firmly perched at the top of the offshoring industry. But is all well amid all this optimism? We take a look at the challenges that India currently faces in the wake of a price spiral and increased pressure on India's reported shortage of qualified information technology workers. India also faces heightened challenges from new geographies. How will it stay ahead of the pack in 2005?
New Offshore Hot Spots: 2005 and Beyond
The next wave of BPO hot spots could well emerge in 2005 as global corporations rethink their sourcing strategies and look beyond cost as the key driver for outsourcing. Here's our list.
ComputerWire's Annual Outsourcing Report: Contract Value Grew Thanks to Government and Smaller Buyer Contracts
ComputerWire tracks outsourcing deals. Here's the report card for 2004.
New Outsourcing Risks in 2005 and How to Mitigate Them
As outsourcing changes, so do the risks. An OutsourcingCenter poll discovers
why rising interest rates and the promise of combining voice and data in
one network using VoIP technology are creating new risks for the industry.
The Top 10 Outsourcing Events in 2004 and What They Mean
David Letterman didn't do a Top Ten outsourcing list, so we compiled one for him. Read why the Hewitt/Exult merger, the TXU/Capgemini deal, and EDS' fallen angel status made the list.
Predictions for 2005: Captives the Next Big Story in Offshoring
Peter Bendor-Samuel shares his predictions for outsourcing in 2005. The hot news: the growing importance of captives. (2005)
How Real Estate Choices Affect Offshoring Decisions
Locations like Brazil and Argentina may compare favorably with current offshoring favorites such as Delhi and Shanghai, a new study by global real estate firm Jones Lang LaSalle found. Read about the up-and-coming offshore locations.
Harnessing the Full Power of Offshore Outsourcing - Part III: Designing to Fully Capture Offshore's Potential
In the final installment of our offshore savings series, Stephen Dunn, Joe Fernandes, and Samir Jog share four principles to help a company achieve full value from its offshoring effort.
Ninety Percent of Senior Finance Executives Find Outsourcing Successful According to Surveys
More than 90 percent of financial executives labeled their outsourcing successful. But the big surprise was that cost savings are neither the primary motivation to outsource nor the biggest benefit perceived. At the end of the day, it's all about customer satisfaction.
META Predicts Offshoring Will Continue to Grow at 20 Percent Clip Through 2008
The research group predicts the offshore outsourcing market will continue to grow nearly 20 percent annually through 2008. Currently it estimates the total offshore market is greater than $10 billion.
Harnessing the Full Power of Offshore Outsourcing: What Range of Cost Savings Should a Company Expect?
The big lure of offshore is the cost savings it generates. How do you determine the real cost savings possible? Three Everest experts help you do the math.
SG&A Expenses Best Outsourcing Opportunity for Utilities
The recent $3.5 billion transaction between TXU and Capgemini is a poster child for the growth in investor-owned utility outsourcing. Rahul Gujral explains where to look for the best savings opportunities.
Considering More than Cost
When Choosing an Offshore Locale
Optimizing skill sets should be as important as cost savings when selecting an offshore location.
A Candid Chat on Offshoring
with MphasiS
What is the biggest mistake buyers make when they offshore? How do you navigate cultural differences? Jeroen Tas, Vice Chairman of MphasiS, does a Q&A. (2004)
Avoiding Outsourcing Pitfalls
Jon Doyle of White & Case shares six key provisions that any outsourcing agreement should have to help mitigate unavoidable problems when offshoring.
American Outsourcers Revamp to Compete with Offshore Suppliers
Two American suppliers created offerings that allow them to compete with Indian outsourcers. Here's what they did.
Foreign Outsourcing Invigorates US Economy
Daniel Griswold of the Cato Institute debunks offshoring myths using Cato research. He explains the economic benefits of offshoring and puts the job loss issue in perspective.
How Mature Are Offshore ITO and BPO Offerings?
The answer to that question is a factor in the decision to offshore. Stephen Dunn explains why it's a good time to begin pilots or adopt a fast-follower strategy.
Synergies Drive Perot's Offshore Acquisition and Create New Value Proposition in Outsourced Medical Billing Services
Where Are They Now is a new Outsourcing Journal feature focusing on how outsourcing relationships evolve beyond their initial expectations. In this first column, we explore an offshore medical billing value proposition that was so good Perot Systems Corporation reached overseas and acquired it.
Three Suggestions for Successful ADM Offshoring From an Exec Who Learned the Hard Way
An executive of Business Engine, a software applications development firm, shares three secrets to successful software development using an Indian provider.
Lou Dobbs: Here's Why You're WRONG!
Lou Dobbs has been one of the staunchest critics of offshore outsourcing. Peter Bendor-Samuel sets the record straight and tells him why he's wrong.
How Outsourcing Impacted a Company's Entry into a New Market
When Geographic Data Technology wanted to enter a new market, it turned to outsourcing to obtain the necessary resources. Its highly collaborative relationship with RMSI changed the buyer's business processes so it could compete in the new market. The result: outcomes far greater than they imagined.
Presenting the Winners of the 2004 Outsourcing Excellence Awards
Long before offshore outsourcing became a component, outsourcing was already established as a strategic business solution that enables enterprises to do business more efficiently and cost-effectively, thus making them more competitive in the marketplace.
Outsourcing to India: The Offshore Advantage
Review of book authored by an independent consultant who has been involved in managing outsourced relationships in the UK, Singapore and India.
Canadian IT Value Proposition Appealing to American Buyers
Canada tops the list of offshore options for American companies outsourcing their IT. That's because price is not the only consideration.
Why We Need to Talk About Risk
Dealing with risk at the outset helps create successful outsourcing relationships. Peter Bendor-Samuel discusses one way to frame the discussion.
Why a Silicon Valley Supplier Brought Its Offshore Call Center Home
Here's what went wrong.
Offshore Outsourcing Helps Mid-Tier Banks
BANKING TRENDS: Mid-tier survival tactics
Business Process Outsourcing Under Sarbanes-Oxley: Challenges and Complexities
You've outsourced finance and accounting functions. But the Sarbanes-Oxley Act says management is responsible for the veracity of the numbers. How do both parties stay clear of the dreaded 404 provision, which guarantees three squares at Club Fed? Attorneys Robert Gareis and Michael Mensik of Baker & McKenzie share some thoughts.
HR Outsourcing: Where It Needs To Go
Gartner says 85 percent of American companies will have outsourced some portion of HR by next year. Here's what's happening in this dynamic sector of BPO.
Offshoring is Only the First Wave of a Major Change in Business as Usual
A cutting-edge, thought leadership perspective on a controversial topic.
Change Management Tools Key to Winning Internal Acceptance
Your company has decided to add an offshore component to its outsourcing initiative. How do you get your employees to understand and support your decision? Peter Bendor-Samuel offers some change management suggestions to get everyone on board.
Offshore Comes of Age in 2003: New Players Enter the Field to Service Buyer's Competitive Needs
Everest's Todd Furniss and Stephen Dunn discuss the explosive growth of the offshore industry, describing the new players and predicting where the work will go this year.
Outsourcing in 2003: How Offshoring Is Changing the Industry
Peter Bendor-Samuel describes the five major trends in outsourcing last year. His take: offshoring is making a big impact.
Protecting Data: Navigating the Rough Waters of Offshore Data Security
Can you send data offshore and be sure it's safe? Last month a Pakistani subcontractor threatened to post patient records from a San Francisco hospital on the Internet in a payment dispute. Everest's Rich Bagby explains how to protect outsourced data at home and abroad.
Offshore Outsourcing - The Ongoing Political Debate
Offshore outsourcing is taking away jobs from Americans; politicians don't like it. But there are many positive benefits.
Deloitte
Study Discovers 75 Percent of Global Financial Institutions Plan to Outsource
Offshore
Intense competition and a weak economy are forcing financial institutions to radically alter the way they do business. A new Deloitte Research study of global leaders discovered 75 percent are outsourcing offshore to save as much as 50 percent. Analyst Chris Gentle details how this trend is developing.
How Offshore Providers Ensure Data Security
Buyers wonder how offshore service providers keep their data safe. OPI uses armed guards and a no-pencil policy, among other things, to protect U.S. data in India.
Offshore Outsourcing Part 1: The Brand of India
Today, the question is not "Should I include an offshore component in my outsourcing arrangement?" but "Where should I go?" Everest's Todd Furniss and Michel Janssen discuss the pros and cons of using an Indian service provider. The first in a series.
Staking a Claim To Excellence With an Offshore Component
MetLife needed to improve its claims processing. ACS now does the job up to nine times faster, up to 75 percent cheaper and with 40 percent more accuracy using offshore labor.
The Expanding Territory of Offshore Outsourcing
Suppliers are moving the back office to the four corners of the globe. At the same time, buyers, now firmly committed to offshore solutions, are wrestling with the decision to select a near shore or farshore provider. Here's what's going on in offshore outsourcing.
ITO: An Industry in Transition
Peter Bendor-Samuel reflects on ITO outsourcing in 2002. His take: service providers are under price pressure because of increased competition from offshore suppliers and new potential powerhouses created by acquisitions. Then, he predicts what will happen in 2003.
East Meets West Up Close
and Personal: Shinsei Bank's Reincarnation
Facing mountainous bad debts and a failing national economy, Japan's banking
sector and its government seek strategies to save the banks from closure.
But Shinsei Bank has already found the path to success. Due to adopting
western-style management concepts, and using outsourcing, it entered a
new market at one-third the time and one-tenth the cost of its competitors
and has profit for moving forward.
Contracting for International
Outsourcing
International outsourcing is tricky, especially when many countries are involved. Attornies Brad Peterson and Mark Prinsley discuss the legal ramifications.
The Coming Sea Change in Offshore
IT
Using an offshore service provider can be a daunting task. Stephen Dunn
describes the options for both buyers and service providers.
The Irony of Customer Contact
Center Outsourcing: New Rationale for Onshore/Offshore Decisions
Recent political instabilities in many of the world's regions have been
thrust into debates as to the wisdom of offshore outsourcing strategies.
Now there's a "made in America" outsourcing solution that offers viable
alternatives to mitigate that risk.
How the September 11 Attacks Changed Offshore Outsourcing
Is offshore outsourcing safe in today's warring world? Here's what's happening
in India, Russia and the Philippines.
Nobody Does it Better
Quickly growing. Unlimited potential. Unpredictable. Each of these words conveys the business environment in Russia today.
A High Tech Military Legacy
When the U.S. military pulled out in 1992, the telecommunications equipment
stayed, resulting in today's infrastructure in the Philippines.
Americans and Indians
Tame the Internet Frontier
In the past, Indian software development companies set up American offices
to win outsourcing contracts.
Banking on Indian Outsourcing
Why are outsourcing buyers turning to Indian companies as their suppliers?
Constant Coverage on
Two Continents
Cost reduction often is the primary push to outsource a non-core area.
Getting it Right on the
Third Try
The chief executive officer of Sol Participations SA believes he can remove
all the things he hates about the Net by making it a two-way communication
medium instead of a one way street.
International Disputes
How do buyers protect their interests when they outsource crucial functions
to offshore vendors?
Lowering the Cost of People
What is going to separate successful companies from unsuccessful ones
in the evolving e-commerce world will be people.
The Russians Are Coming!
Octet, the definitive Russian American ISP, popularizing the Internet
to that international community.
Whiz Kids Help ASP Race To Market
SourceGate provides services to Internet Service Providers (ISPs) to help
them develop an additional revenue source.
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