Tuesday, March 28, 2006

Offshore Outsourcing to multiple locations

Clients are increasingly opting to Offshore Outsourcing to multiple overseas locations; this is according to the sourcing consultancy firm Technology Partners International Inc., TPI of Houston, from the resource of InfoWorld Daily. The clients want to avoid concentration of risk from just being attached to one off shoring location, and this new trend is being driven mainly by the financial services industry, said by Dennis McGuire chairman of TPI to reporters in Bangalore. The typical clients first do Offshore Outsourcing to India, and after experience of four to six years in offshore outsourcing business, the entrepreneur decides to diversify to other locations like Eastern Europe.
Because of this type of strategies, it gives Offshore Outsourcing organization for multinational services and advantage, to which they have capability to offer services from multiple countries or locations. So to stay in competition in international market, Offshore Outsourcing India have to continue to expand beyond home and make the way to International market like other locations Europe or Asia.
These odds are against companies of India, bagging large Offshoring orders for IT and Software because of the miniature in size as compared to MNC, which are multinational services providers for Information Technology industry. The clients are hesitant to invest their majority of budget on just IT services supplier to India.

Offshore Outsourcing India companies

Although, Offshore Outsourcing India companies got a partnership on share of more than 2.18 billion American dollar, for example five-year offshore development contract previous year from ABN AMRO Bank New Venture of Amsterdam, and the largest part of the contract went to IBM Corp. of Armonk, New York for IT infrastructure services. Another big issue is that Indian Outsourcing vendors do not offer all the services that client wants or needed. It was highest ever, the number of Information Technology service center and business process outsourcing (BPO) contracts awarded last year, but look that the total value of these contracts has not increased yet in its quarterly report for the global Offshore Outsourcing industry.
In previous year, 294 contracts were awarded, up from 270 contracts in the previous to previous year, however last year the dipping from 3.6 billion American dollars to 75 billion American dollar of the total value in contracts was surprising. The real growth rate for the value of Information Technology in Offshore Development contracts is slowing down from quite some time. In fact, we can say that instead of growing, the value of these contracts may shrink by 4-5 per cent in the sector of Offshore Outsourcing by this year.