Outsourcing contracts reach all-time high
According to new research by sourcing firm TPI, outsourcing contracts reached an all-time high during the first quarter of 2006.
The report stated that 83 contracts worth €18 billion have been signed in this period compared to 76 contracts valued at €12bn at the same time in 2005.
Duncan Aitchison, managing director of TPI, said that the strong quarter can be attributed to the rise of contracts being restructured. He stated, "However, even when even when we exclude restructurings, the number of contracts signed so far this year is still a first quarter record."
Aitchison however said that savings from outsourcing have been over-estimated and that client expectations are not usually met. He said, "In our experience, outsourcing arrangements which focus solely on delivering huge savings often fail to meet client expectations. 15 percent is not only a realistic saving, but also a significant one."
Image Source: www.stjohnseidler.com
4 Comments
Comments RSS
TrackBack Identifier URI
Leave a comment
Outsourcing is increasing- there is no doubt about that. In the last 2 weeks the Indian tech companies announced their financial results and it was found that TATA, WIPRO and INFOSYS (http://www.southasiabiz.com/outsourcing/) have made huge profits thanks to outsourcing.
Comment by Razib Ahmed on April 25, 2006 9:09 am
Many cost saving strategies look great in the planning but fail to meet more fundamental goals .. those of getting the required job done .. when saving some bucks is pitched to a client .. responsible businesses should fully disclose the potential downsides to outsourcing ..
Comment by US passports on June 28, 2006 9:51 pm
It is true that outsourcing will continue and it is for good. Hundreds of companies like http://www.infosoftechindia are providing cutting edge services to the global companies keeping them competitive.
Comment by ISI on July 9, 2006 10:18 am
Culturally there are vast differences between Indian business world and its western counterparts. I suggest that the visitors prepare themselves for the cultural differences in Business India.
If you are aware of these cultural differences you can certainly turn the high skilled Indian workforce to your advantage.
There is a useful ebook about the Indian Business culture at: http://www.hipcoders.com/india_business_etiquette/index.html
Comment by Trisha on July 12, 2006 4:47 am