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Outsourcing: Global Outsourcing
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Akmal's keynote titled, "Outsourcing: The Next Stage of Evolution in Game Development," will explore the evolution of game development and discuss how the industry has shifted to converge on a distributed approach. He will ... highlight the benefits of outsourcing and explain how globalization is helping to raise the bar leading to better games.
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The Black Book of Outsourcing (Wiley Publishers) is an international business book and outsourcing resource manual written by co-authors Doug Brown and Scott Wilson of the Brown-Wilson Group. The survey solicits information from more than 100,000 global outsourcing users, decision makers, analysts, employees and customers to compile the industry's only independent and unbiased ranking of outsourcing provider organizational performance. These rankings are esteemed by outsourcing clients, prospects, and corporate procurement officers. For additional information, visit http://theblackbookofoutsourcing.com/
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Outsourcing, as the term is typically used in economics, is not necessarily a job destroyer but rather a process of job relocation and may not impact the net number of jobs in a nation or in the global economy. Contrary to the critics, rampant unemployment is not occurring in the United States. Logically, "outsourcing" cannot occur without a recipient that "insources" and, according to economists, "outsourcing" means an export in services which renders "insourcing" an import. Hence, economists insist on viewing the outsourcing/insourcing debate as a debate on trade, adequately analyzed with
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The underlying discontent with global outsourcing has to do with wages. In example, outsourcing to countries such as India and Mexico enables companies to pay much lower wages than they would pay North American workers. With an abundance of people in foreign countries interested in making higher North American wages, finding help is never a problem. For instance, a telecommunications company pays a customer service representative in the United States between $20,000 and $30,000 per year on average. If the company were to turn the same job over to someone in another country, they would likely pay between $10,000 and $15,000. For the foreign worker this salary enables them to significantly raise their standard of living while the same salary would be at the poverty level for North Americans.
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Companies in the process of evaluating new IT outsourcing partnerships should look beyond getting the lowest price, according to a new whitepaper from LSE. The research urges CEOs to avoid the 'winner's curse', in which cheap deals appear to favour the client initially but ultimately cost in the long run. Leslie Willcocks, professor of technology, work and globalisation at the LSE, found that low-cost outsourcing deals often ended up costing companies more due to problems further down the line.
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A new study from Gartner shows what most companies know (except Apple apparently) that most outsourcing deals are done to save money. According to a statement released by the company today, “controlling/reducing operating costs or improving efficiencies” was identified by more than half of the respondents in each region as the primary value they expected to receive from IT outsourcing. Efficiency deals are focused on cost control and, over time, cost reduction with the global of maintaining consistency in service delivery. The survey found that fewer organizations focused their IT outsourcing initiatives on accelerating or improving business outcomes, called enhancement deals, or significantly improving or altering their competitiveness, referred to as transformation deals.
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