Lou Dobbs, the Auto Bailout and Outsourcing (and Outsourcing Contracts)
Lou Dobbs of CNN has been very vocal about conditions to be placed on the automobile companies in the event that they receive a bailout. Chief among them is preconditioning the bailout money on such companies not outsourcing jobs overseas. Dobbs, not a liberal by nature, has long been a foe of the outsourcing industry. However, with federal money in the mix, and a strong, anti-outsourcing bias in the upcoming congress, it is foreseeable that future bailouts may have, at their core, an "America-first" policy regarding outsourcing.
Interestingly, many outsourcing contracts contain provisions allowing termination in the event of a government regulation or finding which is adverse to outsourcing. It remains to be seen if these provisions can be triggered by bailout monies, but there is a strong likelihood that they may.
Offshore vendors should review their contracts – particularly with those industries that are troubled – to get a grip on their exposure to these issues. It may be higher than they think!
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Slowdown is on our minds and on the minds of all the CIOs and IT Managers. So what can we do to beat the slowdown, to the extent that our IT excels and helps us justify the TCO while adding value to the organization by increasing ROI in real terms?
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Comment by Aabhas on December 16, 2008 7:54 am
Outsourcing to Ukraine – Why Ukraine?
Because of the EDUCATION
Ukraine is a famous educational center. The total rate of literacy is 98% with 87% of high school graduates. The amount of foreign youth who wish to get Ukrainian education grows every year. The great part of universities and academies are IT-specialized or have an IT-specialized directions. Solid legacy of the Soviet Union especially in fundamental sciences allows to provide students with a strong education in numerous technical disciplines. According to the GoalEurope there are 30 000 IT graduates in Ukraine every year. The number of Ukrainian scientists is also impressive. Such accumulation of high-qualified human resources allows to keep leading positions in software development.
Because of the PRICE
Ukraine hasn’t entered the European Union yet, so the cost of living remains low at the moment. The average salaries in general and salaries of programmers and managers in particular are much lower than in other Eastern European countries. This situation determines low prices of offshore service and developed products. Price-reason makes Ukraine an extremely attractive country for western Customers.
Because of ENGLISH
Ukrainian specialists have successfully overcome the language barrier. They communicate with English-speaking customers with no problems. There aren’t any difficulties in writing the document of technical requirements, email or just leading a constructive phone conversation.
Because of EUROPE
Nowadays Ukraine is successfully developed in the world of the nearshoring business. The Ukrainian time zone is GMT+2, so the working hours are almost the same as in European countries. As a result, there isn’t any necessity to adapt the working schedule in order to have a direct contact. The Ukrainian provider and the European buyer communicate during suitable working time.
Ukrainian government keeps the EU-oriented politics and nowadays there no visa is required for EU-citizens. Kiev and some other large cities have international airports, so it is easy to get to Ukraine and it doesn’t take a lot of time. The length of flight to Ukraine from Europe takes no more than 3 hour.
Ukraine is a West-oriented country with European cultural and historical background. The European mentality and education of Ukrainians allow customers to avoid problems in communication and simplify business conversation.
Because of KHARKOV
Kharkov is a large educational, cultural, industrial and trade city. It is also the biggest offshore development center of Ukraine.
As an educational center it is famous for numerous universities and academies. For example a strong basis in computer sciences is given by the following well-known universities :
Kharkiv National Technical University
Kharkiv National University
Kharkiv National Technical University of Radioelectronics
National Aerospace University “Kharkiv Aviation Institute”
The abundance of high-qualified human resources is a significant reason for a great number of prosperous software development corporations and just IT-oriented firms and companies to be located here.
Kharkov has an international airport which handles direct flights to a number of European capitals.
Low real estate prices (in comparison with Kiev) attract many companies to open subsidiaries and remote offices.
http://www.alarsoft.com
Comment by Andrey on December 17, 2008 7:28 am
It’s wise advice to review the outsourcing contracts, not only for the vendors but for the buyers as well. 2009 is just round about the corner, best prepare for what challenges and possible rewards it could bring. Happy holidays!
Comment by Phil-am Outsourcer on December 17, 2008 9:40 pm