Why smaller outsource suppliers have an edge?
January 6, 2011

The economy is picking up again and companies are looking for opportunities to grow. Flexibility, innovation and speed to market are shifting to the top of the wish list. This adjustment has not only an impact on the internal organization, but also on the sourcing strategy. A sourcing strategy which focused the last couple of years on signing contracts aimed at lowering cost through standardization and economies of scale. Read more

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From outsourcing to globalization – 2011 and beyond
December 22, 2010

Outsourcing started in the early 90’s as a revolutionary phenomenon of sending unskilled work from developed countries to developing countries and is now transformed into globalization. Globalization fundamentally changed the structure of business, consumers, and the political landscape that revolves around us. Goldman Sachs predicts that the Chinese economy will overtake the American economy by 2020 and Indian economy will overtake the American economy by 2043(see graph below). Whether China and India can overtake the United States might be a different matter, but it is a fact that both countries are growing faster than the US. Read more

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Innovation requires a different sourcing approach
November 24, 2010

Outsourcing either business or IT activities to improve the organizations capabilities to innovate and speed-to-market may look at first sight a contradiction. Typically outsourcing is used to reduce cost, with standardization and less responsiveness regarding new business demand as a side effect. It has to be efficient and low cost comes typically at a price. Read more

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How good are Indian IT companies?
November 1, 2010

India has a formidable reputation as an IT powerhouse. But is the hype surrounding India’s IT prowess justified? How does it measure up to other countries? Well quite decently it seems. There are three Indian companies, Wipro, Infosys and Tech Mahindra in the top ten and the eleventh one, Mastek too is Indian. This is quite creditable considering that the numero uno is IBM and the other biggies in the list are names like CapGemini, Hewlett-Packard and Accenture. Read more

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The Future Outlook on IT Offshore Outsourcing
September 6, 2010

IT offshore outsourcing, like other industry segments, also suffered the impact of the global financial crisis. Many IT service providers had to re negotiate their existing contracts and saw a freeze for contracting new services. However, unlike many sectors still feeling the pinch, the offshoring of outsourcing is on the rebound, as many organizations continue, and even deepen, their cost reduction initiatives as a means to maintain their competitiveness. Read more

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Outsourcing with Solvency II in mind
August 5, 2010

Where within banks the Basel II implementation projects come to an end, are European insurers burning the midnight oil to get Solvency II implemented before the end of 2012. The Solvency II legislation is aimed at improving risk management practices within insurance companies and providing better protection for policyholders. For this purpose, the legislation demands: Read more

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What contributes to the success of LPO
July 24, 2010

LPO is not a new phenomenon, driven by the competition, temptation of lower cost and client’s preference to have quality work with lower cost led to the emergence of Legal Process Outsourcing in 1995. US based Bickel and Brewer was the first law firm to outsource its legal processes to India in this regard. Thereafter, many LPO’s got established and some of LPO’s were closed down as they were not able to get the projects and not able to convince the benefits what the LPO industry is offering for its clients. Read more

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IT-BPO provider? – Try to be as Germanic as possible!
May 25, 2010

To be successful as an outsourcing service provider you should put yourself in your client’s shoes. If you provide your services to other geographical destinations, try to consider their specialities as language, culture, the way of doing business and other local factors. And if you want to do business with Austrian, German or Swiss customers, try to be as Germanic as possible. Read more

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The (dis)advantages of sourcing governance models
April 26, 2010

The last decade has seen an increased awareness that a successful outsourcing relationship depends on more than a good service description alone. Especially in situations where the outsourced service is immature (early in its lifecycle), innovative and subject to many changes, provides a contract only limited means to mitigate operational vendor risk (=not getting what you need due to failing processes, systems or people from the vendor). The key words for these strategic, high risk engagements are trust and relationship. Read more

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Reputation risk outsourcing is underestimated
March 22, 2010

The outsourcing of activities is a trend which started in the seventies with car manufacturers and has since then progressed into almost every aspect of our economy. The main drivers behind this trend were technological advances and the breaking down of national trade barriers. Read more

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