Today’s market has all the right ingredients to launch the next wave of IT outsourcing, says Bruce Culbert, chief executive of iSymmetry. Culbert offers his views on why now more than ever, companies can benefit from and will need to outsource at least some of their IT services.
Also See: More IT Jobs Going Offshore
Cost reduction through application outsourcing is not easy, but it is possible by engaging in strong vendor management practices. In an in-depth report InfoTech Research Group shares case studies and best practices on how to use application outsourcing to reduce costs and minimize risk. Also See: Outsourcers Under pressure to Grant Concessions
As the recession continues, clients are demanding greater concessions from offshore service providers. And in many cases, outsourcers are obliging them. But even in a buyer’s market customers need to minimize their risk in dealing with suppliers.
Also See: Offshoring: Why One Company Chose Brazil
These should be good times for the outsourcing and offshoring sectors as companies look to cut costs under mounting financial difficulties. But the industry is facing perhaps its toughest tests to date as it battles a combination of protectionist fears, cutbacks in IT spending, and worries over financial fraud.
Also See: Outsourcing Prices May Decline 20 Percent Onshore Impact of Offshore Scandal
These are certainly interesting times for outsourcers. The economy is pushing corporations to look at outsourcing as a way to reduce costs, but at the same time corporations are sensitive to protectionist sentiments. Here's a look at 10 outsourcers that are not only weathering the current economic crisis but are making the best of it.
Troubled Indian outsourcer hopes to complete purchase deal by end of April. IBM reportedly among bidders. In the wake of the huge corporate scandal that rocked Satyam Computer Services Ltd., the company is selling off 51 percent of its ownership by the end of next month.
Also see: Outsourcer Satyam starts bidding process for controlling stake
The cost of some outsourced IT services is expected to drop by 5 to 20 percent, according to Gartner, Inc. The reason: to the uncertain economic climate, IT budget constraints and general market consciousness.
What do you do if your technology consultant suddenly goes belly-up? For BearingPoint clients that's not a theoretical question. Last month the McLean, Va.—based consultancy entered its U.S. operations into Chapter 11 of the Bankruptcy Code in the Southern District of New York, listing assets of $1.76 billion and debts of $2.23 billion.
U.S. companies investing big bucks in outsourcing are becoming increasingly concerned about safety and security issues. Now a study names the 10 most dangerous and safest places for outsourcing. But the list is raising controversy particularly over its rating of India
Will Mumbai Attacks Impact Outsourcing?
Satyam Computer Services, the Indian outsourcer caught in a fraud scandal, has taken a number of steps recently to help secure its viability. The best news, however, is that it has managed to sign 15 contracts since news of its troubles broke in January.
Satyam Fallout: Are Clients Headed for the Exits?
Consumer products company Kimberly-Clark initially signed an outsourcing contract as part of a cost cutting effort, but in time the company came to lean on its outsourcing partner Cognizant for much more than software maintenance. Here's why.
Also See: Will Mumbai Attacks Impact Outsourcing?
The 9/11 attacks triggered a surge of outsourcing as many banks, investment houses and insurance companies moved their operations from lower Manhattan to India. Now, in the wake the terrorist attacks in Mumbai, will companies move their outsourcing back to U.S. shores or elsewhere?
The recent discovery that Satyam Computer Sevices Ltd., one of India's largest IT and software development services companies, had inflated its revenue and assets by at least $1 billion may have a far reaching impact on the outsourcing industry. Two big winners from the fallout could be IBM and Accenture.
Also See: India Rocked by Fraud Scandal
Frank J. Casale, CEO of The Outsourcing Institute, has been saying that the outsourcing market is transitioning into what he calls "Outsourcing 2.0." Here's what it is and how it might affect CIOs and other IT professionals.
A survey released this week by Forrester Research confirmed what most in the industry have suspected: IT budgets are being cut in the face of a global economic slowdown. However, the Forrester survey found that not all areas of technology spending are being impacted to the same degree. Demand for IT services in particular remains strong, or at least steady.
A lot is made of IT jobs being sent to India. Yet the top six India-based IT service providers—Satyam, Wipro, Infosys, TCS, Cognizant and HCL Technologies—accounted for just 2.4% of the total worldwide IT services market last year. But they are growing—and capturing bigger deals.