Even Google Is Expanding The Scope Of Its Outsourcing Operations....
Google has been outsourcing for a long time. Going back to its beginnings Google has been outsourcing auxiliary parts of their business. The Indian Times now has reported that Google has been changing its strategy over the past 6 months...greatly increasing the scope of the projects available to its outsourcing partners. Apparently (so the IT says) Google is now outsourcing non mission critical software development and maintenance to some of its outsourcing partners. Given that Google is in absolute dollar numbers the biggest user of BPO/KPO services among the Fortune 500 companies this is undoubtedly good news for the likes of Accenture and IBM. Full IT article can be found below
Google Beefs Up Its Outsourcing....
A collection of comments,newsworthy articles and posts dealing with outsourcing and BPO services by Steve Benger
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- How IBM's Watson Might Kill The Call Center Industry
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- Guerrilla CEO…How To Adapt When Needed
- Think Your Don't Need a Business Mobile App? Think Again!
A Different Kind Of Outsourcing....
I came across this story and felt it needed to be shared. We obviously have a water scarcity in California. California's drought problem has been well documented and should not be news to anyone. Saudi Arabia too has some drought problems (once again...no surprise). Because of their drought the local feed stock economy has been lacking the water to produce locally grown alfalfa, (a rather water intensive crop). Saudi Arabia's solution to that problems is rather perplexing..to say the least. They just bought 14,000 acres in CA to plant the crop there and then export it to Saudi Arabia to feed their local cows. Effectively Saudi Arabia outsourced their water use to CA...and despite our local drought problems it seems to be making economic sense for them. I have seen a lot of interesting outsourcing solutions...but this one clearly stands out.
How Saudi Arabia Outsources Their Water Needs To California....
I came across this story and felt it needed to be shared. We obviously have a water scarcity in California. California's drought problem has been well documented and should not be news to anyone. Saudi Arabia too has some drought problems (once again...no surprise). Because of their drought the local feed stock economy has been lacking the water to produce locally grown alfalfa, (a rather water intensive crop). Saudi Arabia's solution to that problems is rather perplexing..to say the least. They just bought 14,000 acres in CA to plant the crop there and then export it to Saudi Arabia to feed their local cows. Effectively Saudi Arabia outsourced their water use to CA...and despite our local drought problems it seems to be making economic sense for them. I have seen a lot of interesting outsourcing solutions...but this one clearly stands out.
How Saudi Arabia Outsources Their Water Needs To California....
The Philippines Has (Finally) Become The No 1 Call Center Provider Globally...
Moody's Analytic's released a report in which it formally made the Philippines the number one provider of call center services in the world...ranking it ahead of India for the first time. I have been a big fan of Philippine call center agents for a long time. Their natural English abilities, a culture which is highly westernized combined with a very pleasant demeanor on the phone has generated an edge for the Philippines ever since. We have a fairly big call center operation in the Philippines and based upon my personal experiences I can attest to the fact that our clients all experienced a very significant step up in customer satisfaction upon a transition to the Philippines. In my opinion there is no reason not to use the Philippines for call center operations...it is a superior product.
The New Call Center Capital Of The World...
Moody's Analytic's released a report in which it formally made the Philippines the number one provider of call center services in the world...ranking it ahead of India for the first time. I have been a big fan of Philippine call center agents for a long time. Their natural English abilities, a culture which is highly westernized combined with a very pleasant demeanor on the phone has generated an edge for the Philippines ever since. We have a fairly big call center operation in the Philippines and based upon my personal experiences I can attest to the fact that our clients all experienced a very significant step up in customer satisfaction upon a transition to the Philippines. In my opinion there is no reason not to use the Philippines for call center operations...it is a superior product.
The New Call Center Capital Of The World...
Does The Cloud Reduce The Demand For Outsourcing..or doesn't it?
One of the effects of the rise of the cloud is that vast parts of roles traditionally filled by outsourcing companies are falling away. Simply put...there is no need (or a diminished one) for DBA and Systems Architects. The hardware side is basically eliminated. The article below makes the point though that there is a partial offset because of the need to develop middle ware which sits between the client and the cloud.
I can attest to that...just among our client we see that the issue of how to manage various cloud solutions and properly integrate them into an enterprise becomes more and more pressing. I also feel that the technical solutions are becoming more ambitious since there is no longer a hardware limitation which would have created a bottleneck in the old, pre-cloud days.
Does the cloud eliminate or create outsourcing/BPO jobs
One of the effects of the rise of the cloud is that vast parts of roles traditionally filled by outsourcing companies are falling away. Simply put...there is no need (or a diminished one) for DBA and Systems Architects. The hardware side is basically eliminated. The article below makes the point though that there is a partial offset because of the need to develop middle ware which sits between the client and the cloud.
I can attest to that...just among our client we see that the issue of how to manage various cloud solutions and properly integrate them into an enterprise becomes more and more pressing. I also feel that the technical solutions are becoming more ambitious since there is no longer a hardware limitation which would have created a bottleneck in the old, pre-cloud days.
Does the cloud eliminate or create outsourcing/BPO jobs
Ukraine Is The Number 1 For IT Outsourcing....
I can attest to the fact that Eastern Europeans do a great job in software development and IT services. The graduates coming out of their Computer Sciences programs are very smart and have a very good understanding of business processes. (which is sometimes lacking in India and Asia). We actually have development offices in Eastern Europe...so the results of the global survey which made the Ukraine the Number 1 destination are not surprising to me.
Unfortunately though Eastern European Service Providers are also the most expensive ones...and one can often find comparable and better talent at a significantly lower cost in Asia. As with almost everything in life...it comes down to individual assessment of the team.
Ukraine is The Number 1
I can attest to the fact that Eastern Europeans do a great job in software development and IT services. The graduates coming out of their Computer Sciences programs are very smart and have a very good understanding of business processes. (which is sometimes lacking in India and Asia). We actually have development offices in Eastern Europe...so the results of the global survey which made the Ukraine the Number 1 destination are not surprising to me.
Unfortunately though Eastern European Service Providers are also the most expensive ones...and one can often find comparable and better talent at a significantly lower cost in Asia. As with almost everything in life...it comes down to individual assessment of the team.
Ukraine is The Number 1
Did the State of NY Overpay by about 3 Mio US-$ on a 3.45 Mio contract?
Below is an article which tells the story of a company agreeing to perform work in state for the state of NY, it gets caught outsourcing the work to India and then agrees to pay a 3.1 Mio US-$ fine. The contract called for the work to be done in state. The material handled was deemed confidential (fingerprints and personal data) and the work was to be performed by employees who had passed background checks (the Indian contractors of course did not have it). The total original contract value was about 3.45 Mio US-$. It is a pretty straight forward breach of contract issue...the company violated certain stipulations and paid the price for it.
What is really interesting though is what the inner workings of the deal disclose. The contract company was able to get about one third of the original contract done in India for about 85 k (!). As such the company netted more than a Million of the 3.45 Mio contract on just one third of the contract it outsourced. If the entire contract would have been outsourced (at a cost of then roughly 240 k) the state of NY would have been able to save more than 3 (!) Mio US-$.
An Interesting Article As To How The State Of NY Might Have Spent 3 Mio More Than It Needed...
Below is an article which tells the story of a company agreeing to perform work in state for the state of NY, it gets caught outsourcing the work to India and then agrees to pay a 3.1 Mio US-$ fine. The contract called for the work to be done in state. The material handled was deemed confidential (fingerprints and personal data) and the work was to be performed by employees who had passed background checks (the Indian contractors of course did not have it). The total original contract value was about 3.45 Mio US-$. It is a pretty straight forward breach of contract issue...the company violated certain stipulations and paid the price for it.
What is really interesting though is what the inner workings of the deal disclose. The contract company was able to get about one third of the original contract done in India for about 85 k (!). As such the company netted more than a Million of the 3.45 Mio contract on just one third of the contract it outsourced. If the entire contract would have been outsourced (at a cost of then roughly 240 k) the state of NY would have been able to save more than 3 (!) Mio US-$.
An Interesting Article As To How The State Of NY Might Have Spent 3 Mio More Than It Needed...
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