OFFSHORE IT OUTSOURCING STRATEGIES FOR CIOS
SearchCIO.com | 10.18.2007
| RSS FEEDS: | |
|
| |
Offshore IT outsourcing is no longer just about saving money. The focus is now on value and risk assessment. Consulting this Executive Guide can help you decide if it's better to send your call center to
This guide is part of the SearchCIO.com Executive Guide series, which is designed to give IT leaders strategic guidance and advice that addresses the management and decision-making aspects of timely topics. For a complete list of topics covered to date, visit the Executive Guide section.
Table of contents
IT outsourcing with purposeSmart IT outsourcing advice in a declining marketOffshore outsourcing: A look at the security risksOutsourcing's true value still goes largely untappedOffshoring: Improved processes now more of a draw than cost savingsMore resources
[Info-Tech Research Group Inc., special to SearchCIO.com]
Outsourcing is being done in roughly two-thirds of organizations for three key reasons: IT cost savings, IT efficiency and business value, and to level the playing field for small organizations. Outsourcing has the potential to deliver ongoing budget savings in addition to business benefits, depending on the function outsourced. This report presents how your organization can take advantage of outsourcing to achieve your top IT priorities.
Learn more in "IT outsourcing with purpose." Also:
- Midsized outsourcer perfect fit for midmarket firm (SearchCIO.com)
At Church's Chicken, outsourcing IT operations to IBM seemed like a recipe for success. But a smaller, Indian-based firm proved a better value and a better fit than Big Blue. - Outsourcing to India: Smaller firms good bet (SearchCIO.com)
As the top-tier Indian outsourcing companies continue their march to maturity, smaller clients should consider -- with all due care -- midtier providers, Forrester Research says.
[Matt Bolch, Contributor]
The prevalence of IT outsourcing megadeals valued at $1 billion or more dropped 67% in the first quarter of this year, according to Gartner Inc.
But that doesn't mean IT outsourcing is showing any signs of slowing down, said Kurt Potter, research director at Stamford, Conn.-based Gartner. In fact, company research has found that end-user spending for IT outsourcing will grow at a 7.5% annual rate globally, to $318 billion in 2011.
"There are only so many megadeals out there, and 80% to 85% of the largest companies have significant outsourcing deals. We're going to see more deals in the $350 million to $500 million range. Future megadeals will come from government," Potter said, citing last year's announcement that the German military had awarded a 10-year, $9.3 billion deal to Siemens AG and IBM to modernize and run much of its communications network.
Find out more in "Smart IT outsourcing advice in a declining market." Also:
- Report: Offshoring 'stars' in financial services ramp up, clean up (SearchCIO.com)
The Deloitte & Touche 2007 offshoring report finds a gulf between the "best and the rest." Size of operations matters. So does quality. - PwC study: Majority of top executives bullish on outsourcing (SearchCIO.com)
Outsourcing, warts and all, is an "essential business practice" for CEOs, according to a study from PricewaterhouseCoopers.
[Philip Alexander, Contributor]
Offshore outsourcing can often help companies realize substantial cost savings by sending certain functions overseas, where labor costs are a fraction of those here in the
The decision on whether or not to outsource should not rest solely with the CFO. The chief security and compliance officers should also be involved because of the many security- and regulatory-related issues involved with offshore outsourcing.
Learn more in "Offshore outsourcing: A look at the security risks." Also:
- The Big Hand-Off (CIO Decisions magazine)
Midmarket companies are outsourcing data backup to take advantage of fast and efficient services. Just don't forget to upsize your network in kind. - Disaster recovery outsourcing: Simple and cheap (SearchSMB.com)
Outsourcing your disaster recovery efforts can be a wise technology strategy for resource-strapped SMBs. Assess your needs and determine if outsourcing DR makes sense for you.
[Linda Tucci, Senior News Writer]
Companies that outsource IT functions save between 12% and 17% of the cost of doing the work in-house, a new report from Forrester Research Inc. finds.
The savings take into account the expense of moving the work to an outside provider, advisor and legal fees, severance for any employees let go, taxes and ongoing management of the deal. Moreover, the discount is conservative, said Forrester analyst Paul Roehrig, because it does not factor in harder-to-quantify benefits that can be accrued in a good outsourcing deal.
"There's additional skills that you would get, technology expertise, predictable delivery costs, none of which is included in these savings figures," said Roehrig, who covers sourcing and vendor management at the Cambridge, Mass.-based firm.
Find out more in "Outsourcing's true value still goes largely untapped." Also:
- Gartner: U.S. IT industry needs to wake up and smell the competition (SearchCIO.com)
Gartner plays provocateur in the opening keynote at ITxpo, challenging U.S. IT pros to "take the first-mover advantage," or risk being eliminated. - CIOs face global competition, more cost pressures in 2007 (SearchCIO.com)
Innovation, global competition and staff retention are among the priorities CIOs should focus on in 2007, according to columnist James Champy.
[Shamus McGillicuddy, News Writer]
"I think over time, the [offshoring] industry, certainly in
In a conversation entitled "Offshoring 2.0: Assessing the landscape of the flat world" with The Wall Street Journal staff writer Christopher Rhoads, Baresich said the opportunity for wage arbitrage is still available to CIOs in the developing world, but salary growth in those countries is leading to more modest cost savings than 10 years ago. Whereas once companies could achieve a 5-to-1 savings in labor costs by offshoring, now the savings are just 2-to-1 or 3-to-1.
Learn more in "Offshoring: Improved processes now more of a draw than cost savings." Also:
- Benefits of outsourcing go beyond pricing (SearchCIO.com)
Companies are looking beyond cost when evaluating the many benefits of outsourcing. As the market becomes more competitive, business value and governance become the top drivers. - Business process outsourcing can be key for survival, say CIOs (SearchCIO.com)
Technology executives who have outsourced key business processes say the strategy can keep a company alive.
- Resource center: IT sourcing and services (SearchCIO.com)
- Offshore Outsourcing Risk Evaluator
|
|
|
|
| CIO RELATED LINKS
| |||||||||
|
| |||||||||||||
RELATED GLOSSARY TERMS
Terms from Whatis.com − the technology online dictionary
business technology management (SearchCIO.com)
globalization (SearchCIO.com)
offshore outsourcing (SearchCIO.com)
Offshore Outsourcing: Do you speak geek? (SearchCIO.com)
outsourcing (SearchCIO.com)
Outsourcing: Glossary (SearchCIO.com)
RELATED RESOURCES
2020software.com, trial software downloads for accounting software, ERP software, CRM software and business software systems
Search Bitpipe.com for the latest white papers and business webcasts
Whatis.com, the online computer dictionary
No comments:
Post a Comment