Nearshore Americas

Forrester Finds Companies Can Outsource Up to 82% of Workload

NSAMERICAS STAFF REPORT
Offshoring is a big business for everyone involved. While the companies that offshore their work will look to save on cost, the companies that provide offshoring services will gain benefits by securing business and employment. A recent research by Forrester tries to analyze the staffing requirements of a company that is looking to offshore its work. The research provides information about the various stages of offshoring process and offers a comprehensive report on each of this stage.
According to the Forrester report, the offshoring process involves four stages; namely, Bystanders, Experimenters, Committeds, and Full Exploiters. These stages involve the initial processes where the client tries to understand the working methodologies of the service providers and develops a trust. During these four stages, the client and the service provider develop a good understanding about procedures such as specifications, incident management, and governance processes, claims the Forrester Research.
The report argues that 90% to 95% of project work can be offloaded provided the companies streamline their processes. Adoption of more sophisticated knowledge transfer tools will also do the trick, states the Forrester report.
According to the report, many companies in India have come up with business models that will allow the clients offshore a higher percentage of their work than before. The report quotes TCS, which claims that its factory testing model enables clients to take as much as 82% of the workload offshore. If the companies can achieve steady state infrastructure management, they can offshore as much as 80% to 85% of the work to countries such as India or Malaysia; claims the report.
Forrester has put forward various questions to the companies that offshore their work to countries such as India and Malaysia. The report asked these companies their opinion about the affects of current global economic conditions on the company’s overall IT spending over the next 12 months. The report has also asked about the priorities of the companies when it comes to components such as cost, increased vendor management capabilities, increasing the use of offshore resources, increase the use of output-based pricing, and many other such issues.
Finally, the report concludes that the current economic situation has brought about the time where the offshoring companies make the transition from a body shopping model to a full managed services approach.

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Kirk Laughlin

Kirk Laughlin is an award-winning editor and subject expert in information technology and offshore BPO/ contact center strategies.

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