Watching expenses like a hawk has been the hallmark of companies that have survived the global recession. So, when did you sign your last outsourcing contract? Specifically, a contract that includes offshore workers, especially in India?
If the answer is July 2011 or earlier, there’s a good chance you’re paying as much as 20 percent too much. Here’s why.
1. The foreign exchange rate. For a decade the exchange rate between the Indian rupee and the US dollar has stayed fairly steady. But last August the rupee suddenly got weaker (meaning the rate went up) against the dollar.
Procurement outsourcing is maturing. Buyers in the first wave outsourced primarily transactional-rules-based activities, with labor arbitrage in low-cost countries being a key benefit. As those relationships mature, buyers look to their providers to create additional value beyond labor arbitrage. I talked with two Infosys BPO executives, Srikrishna Koneru, Global Sourcing & Procurement Outsourcing-Solution Design Head, and Rajiv Gupta, Geo Business Manager, about procurement/sourcing trends, how Infosys is helping its customers move up stream and capture more value, and about how Infosys’ Joint Innovation Board benefits customers.
Q: How does the value proposition differ in “sourcing support” compared to “procurement,” in… Read the rest
News reports over the past two weeks highlight the movement of midsized Indian service providers, Firstsource Solutions, WNS Global Services, and Intelenet Global Services deeper into North America instead of Europe. Others are moving deeper into Latin America and China. China’s outsourcing providers are taking hold in North America. Over the years I’ve followed and written about outsourcing, I’ve pointed out that competition in the service provider landscape is good for the buyers.
But maybe not. Let’s look at the bigger picture.
When a competing provider enters a market, an incumbent provider’s customers are vulnerable. The “hunters” on the new… Read the rest
For more than 10 years, it has been my privilege – and my fascination – to interview the world’s leadings service providers and analysts about their predictions as to how outsourcing will change in the coming year.
Years ago, the articles started with an overview of how accurate the prior year’s predictions turned out to be. Except for the growth predictions, the predictions were often not on the mark – except for two years where the industry observers predicted massive change – one due to the beginnings of BPO and the other was the year everyone talked about the impact… Read the rest
In Rome, do as the Romans do! This popular proverb has a strong application as corporations expand across international locations. Most of us are aware of the initial failures that some of the top brands in the world have encountered when they have rushed to penetrate a new geography/country without understanding the local nuances fully.
As an example, the Coca-Cola name in China was first read as “Kekoukela,” meaning “Bite the Wax Tadpole” or “Female Horse Stuffed with Wax,” depending on the dialect. Coke then researched 40,000 characters to find a phonetic equivalent to “kokoukole” translating into “Happiness in the… Read the rest
Switching service providers is nearly always a situation fraught with challenges, so selecting a new provider that has an effective transition methodology is crucial. Avantica Technologies, a service provider in Costa Rica, is known not only for its software development expertise but also for the way it builds collaborative relationships with its clients and for its strategy for ensuring cultural fit. I talked with Luis Enrique Corrales, Avantica’s Regional Sales Director, about these issues.
Q: How do you help your clients get off to a good start with your company when transitioning out of a difficult situation where an existing… Read the rest
A study by the Conference Board and Duke University on offshoring trends among U.S., European, and Australian firms, found a slowing in the creation of new captive offshore operations and greater interest in the benefits of outsourcing to large offshore service providers.
Nearly two-thirds of the surveyed respondents are planing new offshoring initiatives during the next three years.
The report on the study (“Financial Services Offshoring: Moving Toward Fewer Captives and Global Cost competitiveness,” issued May 28) also found financial insitutions are considering nearshore alternatives in Argentina and Costa Rica as well as lower-cost alternatives in U.S. cities such as Jacksonville (Florida) and Raleigh/Durham/Chapel Hill (North… Read the rest
IDC released findings from its “Chilean Global Services Industry Observatory” report, indicating growth of more than 100% in 2008. Looking at business processes that account for the global services revenue, the report finds:
… Read the rest
Size makes a difference. Midsized businesses have different concerns surrounding IT infrastructure management than large enterprises. Among other IT solutions, CPM Braxis, a leading IT service provider in Brazil, provides infrastructure services for enterprise and midsized companies. I interviewed the firm’s Global Clients Director, Andre Maximiano, about issues in midmarket outsourcing.
What are some infrastructure management issues that midsized companies face?
AM: Due to budget restrictions and growth pains, midsized companies often have to improve performance of one department at the expense of the overall business. They also are often forced to take actions that don’t optimize performance because… Read the rest
On April 6, Sierra Atlantic Inc., an IT services provider recognized for outsourcing Oracle and product engineering solutions, announced that it has acquired Baytree Associates, a Charlotte, North Carolina-based consulting firm and Oracle solutions provider. The deal helps Sierra Atlantic, a Platinum Partner in the Oracle PartnerNetwork (OPN), further consolidate its already strong position as one of the top Oracle solutions and managed service providers.
But let’s look at the bigger picture. Sierra Atlantic’s strategy is a great example of how the service provider landscape is quickly changing – and why.
I talked with GK Murthy, Sierra Atlantic’s Executive Vice President. The… Read the rest
Recent Comments
“Great interview with a top professional! Shared. Mel, alldayPA ”
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