Daily Archives: June 8, 2012

Offshoring 3.0: What Is it?

There have been several arguments against offshoring and most of them aren’t really grounded in reality. One of them is that offshoring causes unemployment among a larger section of people and that it causes economic instability directly or indirectly. This assumption may not really be true and several studies have found that there isn’t really any connection between unemployment in native country and offshoring of jobs to countries overseas. However, there are several errors that companies make when it comes to offshoring. It is precisely this reason why Mike Flanagan chose to talk about what he calls Offshoring 3.0.

hough the article he wrote on Just Style is not available for those who are not members of the website, one can easily make out that he discusses what needs to be fixed in the realm of offshoring and overseas production. He discusses garment industry but I believe the same discussion can be had in IT and other sectors as well. The idea is to fix the existing problems, bring in new policies and guidelines that not only save money but also help increase revenue.

Offshoring 3.0 then has to be something related to fixing errors and mistakes that companies have committed all these years in the name of offshoring and outsourcing. Probably, this damage control begins with accepting that offshoring may somehow be a more attractive option than mere outsourcing without giving it a second thought. So, I think the next step among offshoring companies or companies that choose to send their work abroad must be to engage in a total overhaul of policies and framework.

Source: http://www.distantjob.com/blog/2012/06/offshoring-3-0/

Did you like this? Share it:

IT outsourcing continues to grow but staff reduction is not the motive

More and more firms are seeing the financial benefits of outsourcing their IT operations, it has been claimed.

Brian Robinson, research director business and IT services strategies at outsourcing analyst firm HfS Research, told PC Advisor that many companies have seen outsourcing as a way of reducing their staffing levels but many have also because it helps to streamline the way their business runs.

He believes, though, that outsourcing providers cannot sit back and wait for companies to come to them as those looking to outsource are becoming increasingly savvy and valuing the quality of service over simple financial savings.

“The average outsourcing deal size is decreasing, while the number of deals continues to increase,” Mr Robinson stated.

“The market is starting to realize that it is about engaging the provider with the best overall value proposition, as opposed to the biggest or cheapest provider.”

His comments are echoed by Todd Hintze, partner with outsourcing consultancy Everest Group.

He says that while firms are still interested in being cost effective, they are now “two steps beyond reducing head count”.

Recently, two representatives at McKinsey and Company’s business offices in Zurich, Switzerland and Berlin, Germany advised firms to give the idea of IT outsourcing serious consideration.

Writing in the Financial Times, they said that the best results come through what is known as “transformational” outsourcing projects.

“Just because core operations are essential to a company, they don’t necessarily need to be run by the organisation,” a segment of their article read.

“That’s the lesson businesses in a range of industries – as diverse as financial services and telecommunications – are learning as they outsource core operations.”

Source:http://www.theoutsourceblog.com/2012/06/it-outsourcing-continues-to-grow-but-staff-reduction-is-not-the-motive/

Did you like this? Share it:

Oracle CEO to lay out ‘cloud computing’ strategy

Oracle CEO Larry Ellison will outline his company’s strategy for selling more business software services over the Internet, a rapidly growing concept pioneered by Salesforce.com.

Wednesday afternoon’s presentation at Oracle Corp.’s Redwood Shores, Calif., headquarters is the latest sign of the intensifying battle in "cloud computing" — the technology industry’s catchphrase for software that can be accessed on any Internet-connected device that subscribes to the service. The approach is a departure from the traditional method of licensing and installing business applications on individual machines, a sales system that has helped established Oracle as one of the world’s most successful software companies.

Ellison, a flamboyant leader known for his acerbic remarks, publicly ridiculed cloud computing as a passing fad for years even though he invested some of his personal fortune in Salesforce.com Inc. and another similar company, NetSuite Inc.

Now that Salesforce has grown into a company on track for $3 billion in annual revenue, Ellison is trying to ensure that Oracle gets a share of the business. So far this year, Oracle has agreed to pay more than $3.5 billion to buy several cloud computing rivals. Another rival, SAP, also has been snapping up cloud computing services to expand into the field, too.

Earlier this week, Salesforce.com announced that it’s paying $689 million to buy Buddy Media to help its customers manage their marketing campaigns on Facebook and other social networking elements. Those offerings run on the cloud computing model. A day later, Oracle said it’s buying Collective Intellect Inc. for an undisclosed sum as it also expands its social media tracking services.

Source:http://www.businessweek.com/ap/2012-06/D9V7O45G1.htm

Did you like this? Share it: