Offshore IT Outsourcing Markets
broad scale the best markets for offshore IT outsourcing are:
- Asia Pacific
Asian countries have not embraced IT Outsourcing as rapidly as the other
regions of the world like the US and Western Europe. The exception in Asia
Pacific has been Australia and New Zealand - countries that are culturally
western. Cultural differences may explain why many countries in the region are
hesitant to Outsource. They prefer to keep their IT operations in-house. How
ever in view of increased global competition, countries in the region are
increasingly outsourcing to gain a strategic advantage. India being one of the
fastest growing markets in the software development area also happens to be the
best market for IT outsourcing according to sources. Japan and China come
second in the lead with regards to the Asian markets for outsourcing.
- Emerging as a noticeable destination.
much-touted isolation of the South African market is turning out to be a boon
in disguise. The IT manpower that was homegrown to achieve self-reliance is now
beginning to be leveraged to serve global markets. The major reasons being:
- Test-bed for emerging technologies
SouthAfrica has traditionally been a good test-bed for emerging technologies, and an
ideal launching pad for new and enhanced products. This is because it has been
a relatively isolated market. A case in point is ERP.
SAP and BAAN have been involved in the South African market since 1994. And the
country has been a good test bed for new products.
- Large, active local market
Major IT outsourcing vendors like IBM Global Services, EDS and CSC
have established a South African presence. There are others like BizSoft Group
and Goldstone Technologies that have started offshore outsourcing.
In a recent development, The Greater Johannesburg Metropolitan Council has
appointed a consortium consisting of IBM South Africa and Masana Technologies
as it's IT outsourcing partner in a five-year contract valued at more than Rs.500million.
Dimension Data, a leading player has recently rolled out an IT network
in less than 60 days in the US. The network links 400 offices of Randstad North
America. Randstad North America is part of Netherlands-headquartered Ranstad
Holding, the world's third largest provider of employment services.
CSIPER Consulting is a leading ERP services provider. It offers SAP consulting,
implementation, and training to organizations around the world. Johnson &
Johnson, Caltex, and Land Rover are among its clients.
IT skills are in high demand. And brain drain is a constant. In order
to address the issues of IT education and brain drain abroad, the South African
Government and private organizations are working together.
The University of Pretoria has extended its MBA program to include an ERP program.
Also, the University of South Africa is launching an IT focused business
leadership program. Motorola is promoting engineering and other IT related
Chile and Costa Rica were the highest rated Latin American countries in a
recent analysis to stand out as the major outsourcing markets in the US. Having
a nearshore outsourcing company has benefits of its own.
- Same time zone with the US
and Canada (the largest Outsourcing market).
- Reduced tariff because of the
North American Free Trade Agreement (NAFTA).
- Cheaper travel costs for
North American customers.
- Wages comparable to countries
like India, where rates are on the rise.
these, there are certain country specific factors that make near-shore
companies preferable over others. Mexico, for instance, shares the same
socio-cultural milieu with the US.
we talk about Europe role in the outsourcing scenario it gives us the role of
e-crm outsourcing. This has been the growing trend in the European software
companies. Customer Relationship Management (CRM) is used to maximize
satisfaction through a bank's knowledge and understanding of customer needs.
Internet banking, empowered with CRM strategy, has the potential to let banks
attract new customers and boost its revenue generating activities.