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Offshore outsourcing

August 7, 2009

Offshore outsourcing is the practice of hiring an external organization to perform some business functions in a country other than the one where the products or services are actually developed or manufactured

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  1. In the 1990s, manufacturing facilities in Mexico, Puerto Rico, Canada, South Korea, and Taiwan began to proliferate and absorb much of the consumer electronics and personal computer production. In the late 1990s, Southeast Asian countries like Malaysia became key areas for manufacturing.
  1. Offshore software outsourcing started with labor intensive projects such as legacy software maintenance, Year 2000 bug fixes, and low-level coding projects.  Now,offshore developers are starting to work on higher-end projects such as Web applications, XML, and software design and architecture work
Benefits in offshore outsourcing:
  1. Expertise in latest technology
  1. Rapid deployment
3. Lowered Costs
4. Fast grow in the world.
Types:
1. IT services.
2. BPO.
3. R&D
4. KPO
Offshore Outsourcing companies like
  1. Media and information company Nielsen is to spend $1.2bn over 10 years outsourcing a chunk of its IT to Tata Consultancy Services (TCS). Processes like Operational processes and help Nielsen integrate and centralize multiple systems, technologies and processes Finance and Human Resource business processes on global scale.
  2. Mobile phone retailer Carphone Warehouse has signed a $200m five-year deal with Indian IT Company Patni. (The deal is an extension of an existing four year relationship between the two companies and covers a range of services including application development and maintenance and systems integration).
  3. GTL Ltd, Mumbai and Ericsson UK have joined forces to capture a share of the $150 million managed mobile network infrastructure services market in the UK.
  4. Vodafone Essar announced that it is outsourcing its entire IT operations, except network service platforms, to IBM, in a five, year deal. The agreement includes application development and maintenance, including billing, business intelligence, ERP systems, as well as data centre operations, and end user services.
  5. IBM is opening new offshore outsourcing centers in India on Nadia city in Uttar Pradesh.
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