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The companies in USA and Europe are increasingly using the offshore outsourcing model for cutting the cost. Some of the interesting articles, statements and case studies are listed below:
Global
Outsourcing to shoot up in 2003
(Research by Forrester Research and McKinsey & Co)
Shanti Kumar
NOTED
INTERNATIONAL consultancy
firms Forrester Research and
McKinsey & Co have predicted that the
global outsourcing business
will grow rapidly during 2003. Indications are that a
large number of companies in
the U.S. will engage offshore providers,
triggering a rapid rise in
their outsourcing budgets. Studies by these
two agencies have predicted
that the year 2002 will end with a 23 per cent
growth in outsourcing
business.
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Quote from Bill Gates
"As a business manager, you need to take a hard look at your core competencies. Revisit the areas of your company that aren't directly involved in those competencies, and consider whether Web technologies can enable you to spin off those tasks. Let another company take over the management responsibilities for that work, and use modern communication technology to work closely with the people - now partners instead of employees are doing the work. In the Web work style, employees can push the freedom the Web provides to its limits."
Quote from Inc. magazine
In their book Unleashing the Killer App: Digital Strategies for Market Dominance (Harvard Business Press), Mui and co-author Larry Downes urge companies to perform internally only those activities that can't be performed more cheaply in the open marketplace. When the marketplace in question is the Internet, where vendors with only "dot com" over their head can operate at very low costs, the savings from pushing out business tasks is considerable.
70:70:70 rule of GE (Source: "Business World")
The world's most revered chief executive Jack Welch has introduced a new rule. It is called the 70:70:70 rule. Apparently, it has also been e-mailed to GE employees across the world. Welch has decided that 70% of GE's work will be outsourced. Out of this, 70% will be done from offshore development centers. And out of this, about 70% will have to be done here in India. This ultimately boils down to about 30% of GE's work being outsourced to India.
Business process outsourcing bound for Bangalore, India
By John Ribeiro, IDG News Service
BANGALORE, INDIA -- Seeking to cut costs in today's sluggish economy, U.S. and European companies are capitalizing on the latest buzzword in India: business process outsourcing. Starting with call centers and other customer relationship management (CRM) services, companies are either setting up their own business process outsourcing centers or outsourcing to a growing number of Indian companies a variety of internal processes, ranging from finance and accounting to human resources functions such as payroll management and transaction processing.
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Quote by D&B
According to Dun & Bradstreet's most recent Barometer of Global Outsourcing, outsourcing expenditures will top $1 trillion worldwide by year end 2000. These expenditures have doubled in just the past three years alone. North America leads in outsourcing spending, representing 39 percent of the global total, followed by Asia at 31 percent and Europe at 25 percent.
Fast, cheap, and in English, India clerks for the world
Robert Marquand - Staff writer of The
Christian Science Monitor
NEW DELHI
Three years ago British Airways "back office" sat in costly London. Now the operation runs out of Delhi and Bombay, staffed by college grads. For them, the $282 a month starting salary is princely - some 7,000 Indians compete for each job. So effective and cheap has been the airline's move to India that it is branching out to other simple data services, opening a new 1,000-strong office this month.
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