Customers Make Clear that Outsourcing is About Adding Value
April 4th, 2012
By Robert L. Scheier
As the global economy improves, customers are looking to outsourcers to not only save money, but to drive growth, improve quality and drive innovation.
Those were among the key themes from two days prowling the corridors and break-outs at the Sourcing Interest Group (SIG) spring summit. Speaker after speaker, whether the topic was procurement, category management or macroeconomic trends, described how their employers are trying to use outsourcers not “just” to save money but to make a more strategic contribution.
Garratt: KPO and LPO are bright spots
By Clayton Browne
Some historians argue that Kodak’s 1989 decision to outsource most of their IT operations was the watershed moment for the outsourcing industry, and certainly many other large companies jumped on the outsourcing bandwagon shortly after that. And for the next decade or so the question was not whether to outsource, but what and how much to outsource. But can offshore outsourcing continue to grow year after year at such a sizzling pace?
What Latin America Can Really Learn from India’s Outsourcing Journey
March 21st, 2012By James Bargent
There are not many people in the world of outsourcing that can match Gokul Agarwalla for experience. The Indian-born 65-year-old has travelled the world several times over in a 40-year career that has seen him represent some of the industry’s biggest names and advise governments from India to Taiwan on how to tap into the outsourcing revolution. (He started working with Wipro when there were less than ten people in the firm.)
When the Deal Goes Sour: How Morgan Stanley Manages Troubled Outsourcing Relationships
March 19th, 2012
Fafian: Don't kill the deal if you don't have to.
By Bob Scheier
John Fafian, executive director of firmwide Sourcing at Morgan Stanley, believes in trying to fix broken outsourcing relationships before ending them. Listen to his views on why it’s often better to stick with the provider you already have, where legal and procurement fit in and the process of analyzing in-sourcing options if you are looking to bring work back on-shore.
India’s Outsourcing Giants Continue to Grow Amid Uncertainty
March 13th, 2012
By Clayton Browne
India has been the dominant player in offshore outsourcing since its infancy in the 1980s and today represents around half of the total international IT outsourcing and BPO industry. Indian outsourcing companies employ more than 2.2 million people and expect to earn more than $50 billion in total revenue in 2012.
Creating a Wildly Successful Outsourcing Program
February 24th, 2012
By Linda Tuck Chapman
Outsourcing is serious business and will have a long-term impact on your company’s future. Let’s improve the odds that it’s a positive one! Your customers and shareholders shouldn’t and won’t differentiate who delivers their services – your company or a third party. So the time you invest in planning your outsourcing program and sourcing the right service providers is time well spent.
Small Outsourcing Deals Pose Their Own Big Risks
February 15th, 2012
By Dan Berthiaume
Driven by needs such as lower costs or specialist expertise, more and more BPO and IT outsourcing customers are turning to smaller contracts with a larger number of providers. According to the 2011 ISG TPI Index, the number of contracts in the $25 million to $99 million range grew considerably in the past year compared to those worth $100 million and more.
Ah, but smaller deals don’t necessarily mean smaller worries for clients.
Upstarts Threaten Big Players in Potential LatAm BPO Boom
February 6th, 2012
Santiago: Sustained vertical drive.
By Dan Berthiaume
Latin American nations make up about one-quarter of the 2012 list of Top 100 outsourcing locations compiled by global outsourcing research/advisory firm Tholons, and that is no accident. As Manuel Ravago, president for research at Tholons, explains, Latin America is an up-and-comer in the world of BPO. And more agile smaller countries might make the most of that.
Examine More Than Cost Savings When Judging the Nearshore
February 2nd, 2012By Patrick Haller
When making sourcing decisions, a lot of attention is paid to the pricing structure and qualifications of service providers, while their actual location is sometimes a secondary consideration. However, when assessing a destination, it’s important to realize that what might be favorable today can morph into a nightmare scenario tomorrow. Don’t be caught unaware and unprepared for the ever-changing dynamics of the Nearshore.
Philippines’ Attrition is Spiking – Is Latin America Next?
January 27th, 2012
By Luke Bujarski
High employee turnover is something that sourcing managers have learned to put up with when offshoring IT and BPO tasks to India. But now the Philippines has also begun showing signs of overheating. Given Latin America’s relatively small labor pools, we worry that the region might follow suit and succumb to the same pressures that have pushed the Philippines to its limits. So far, rampant turnover has not been a major problem with LatAm markets. But just in case, we decided to take another look at some of the details around attrition and other symptoms of hot labor market conditions.
