IT Outsourcing for the Right Reason
IT Outsourcing should be done in the right way.
This is the general sentiment expressed by Derek Goh, the executive general manager in IT and Management services at Challenger Financial Services. This statement was expressed as a response against the issue of outsourcing causing job losses for countries that are signing outsourcing deals.
Cost is no longer an issue according to Derek because its all about business strategy for companies. Here is an interesting statement issued by Goh:
"The price points have moved. There's no price differentiator anymore say, between India and getting the service locally because Indian companies have moved up the value chain."
Do you agree with his point of view?
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I believe price is still the biggest factor. If there is no price differentiator, then it must the value being added to the business. Which means there are more talented IT professionals overseas and they are more productive and make the business more profitable. Business means profit after all.
Comment by John on October 25, 2007 3:56 pm