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//z 2013-02-17 17:42:13 IS2120@BG57IV3.T2511347408.K[T139,L1791,R59,V1980]
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COMPANY KEY STRENGTH 1 Accenture Balanced Performance 2 Infosys Balanced Performance 3 HCL Technologies Customer References 4 CBRE Balanced Performance 5 ISS Balanced Performance 6 NCR Management Capabilities 7 Wipro Technologies Customer References 8 Capgemini Demonstrated Competencies 9 CSC Demonstrated Competencies 10 TeleTech Demonstrated Competencies 11 Sodexo Customer References 12 Amdocs Balanced Performance 13 Genpact Management Capabilities 14 Aegis Balanced Performance 15 CGI Group Management Capabilities 16 Johnson Controls Management Capabilities 17 Diebold Integrated Services Balanced Performance 18 iGATE Customer References 19 Sutherland Global Services Demonstrated Competencies 20 Jones Lang LaSalle Management Capabilities 21 Colliers Global Corporate Solutions Customer References 22 Firstsource Demonstrated Competencies 23 Convergys Management Capabilities 24 Compass Group Customer References 25 PCCW Solutions Balanced Performance 26 WNS Global Services Demonstrated Competencies 27 Xchanging Management Capabilities 28 ADP Management Capabilities 29 Neusoft Demonstrated Competencies 30 Getronics Workspace Alliance Balanced Performance 31 Newmark Knight Frank Management Capabilities 32 Williams Lea Management Capabilities 33 Cassidy Turley Management Capabilities 34 Océ Business Services Balanced Performance 35 Ceridian Customer References 36 VanceInfo Balanced Performance 37 EPAM Systems Management Capabilities 38 Syntel Balanced Performance 39 TIVIT Customer References 40 Donlen Customer References 41 Lionbridge Balanced Performance 42 Pitney Bowes Management Services Balanced Performance 43 HGS Demonstrated Competencies 44 transcosmos Demonstrated Competencies 45 Insigma Balanced Performance 46 HP Enterprise Services Demonstrated Competencies 47 Luxoft Demonstrated Competencies 48 Aon Hewitt Demonstrated Competencies 49 Softtek Management Capabilities 50 hiSoft Technology International Balanced Performance 51 Donnelley Global Outsourcing Balanced Performance 52 Inspur Balanced Performance 53 Zensar Technologies Management Capabilities 54 CleNET International Balanced Performance 55 Hexaware Technologies Customer References 56 Infotech Enterprises Customer References 57 SPi Global Demonstrated Competencies 58 Concentrix Customer References 59 EMCOR Group Management Capabilities 60 Indecomm Global Services Balanced Performance 61 LeasePlan USA Balanced Performance 62 Neoris Customer References 63 Unisys Customer References 64 Kelly Outsourcing and Consulting Demonstrated Competencies 65 NIIT Technologies Demonstrated Competencies 66 Aditya Birla Minacs Demonstrated Competencies 67 ChinaSoft International Management Capabilities 68 Ci&T Customer References 69 Altisource Balanced Performance 70 ITC Infotech Customer References 71 Towers Watson Customer References 72 Birlasoft Customer References 73 Long View Systems Management Capabilities 74 Advanced Technology Services Management Capabilities 75 AppLabs Balanced Performance 76 Intetics Balanced Performance 77 Bleum Balanced Performance 78 ReSource Pro Balanced Performance 79 Scicom Balanced Performance 80 Nagarro Customer References 81 Xceed Balanced Performance 82 itransition Customer References 83 Freeborders Balanced Performance 84 SoftServe Demonstrated Competencies 85 Auriga Customer References 86 Cross-Tab Marketing Services Customer References 87 Grupo Prominente Balanced Performance 88 National Medical Billing Services Balanced Performance 89 Endava Demonstrated Competencies 90 AbsolutData Management Capabilities 91 Synygy Balanced Performance 92 DATROSE Balanced Performance 93 Artezio Customer References 94 Emerio GlobeSoft Customer References 95 FirstLine Software Customer References 96 TEAM International Customer References 97 emids Technologies Management Capabilities 98 CrysTelCall Customer References 99 LegalBase Management Capabilities 100 Harbinger Systems Customer ReferencesOutsourcing has become a mainstay in the world economy today. Large corporations are looking at reducing their operating costs by seeking out the same work quality at lower costs. According to the 2005 Duke University CIBER/ Archstone Consulting study, 73% of Fortune 2000 companies say off shoring is an important part of their overall growth strategy. Here is a list of the top ten outsourcing destinations.
1. India is the leading star of this global outsourcing surge, cornering approximately 80-90% of the global offshore market. It has to its credit a large pool of talented and English speaking professionals (200,000 IT graduates per year), robust infrastructure as well as the advantage of providing outsourced services at a low cost. It leads over its nearest rival by a wide margin mainly due to its early start in the field.
2. China is being touted as being the next big IT outsourcing destination and is expected to rival India by 2007. The Chinese IT services market has grown nearly 42% a year since 1997. This growth is mainly built on the pricing plank and a study by PriceWaterHouse Coopers that suggests that using China based outsourcers could save companies approximately 37% as compared to those from India. The Chinese government has also put in its bit to enhance China’s image as an outsourcing destination. It has liberalized the economy, laws and policies and laid a major emphasis on education. China is fast becoming a low cost alternative to its economically developed neighbors like, Korea, Japan, Taiwan, Hong Kong and Singapore.
3. Malaysia has well-developed world-class infrastructure and its outsourcing industry has good government support. A number of policies are being put in place to widen the labor pool and improve proficiency in English and technical skills.
4. Philippines has many years of experience in the BPO space and have to their credit a vast population that speaks English with American accents, while also being exposed to Western culture and global business. It also has high bandwidth as compared to its other neighbors.
5. Hungary is slowly emerging as Europe’s leading IT service providers. Once an Eastern Bloc country, it has the advantage of offering its European counterparts with near shore facilities at a much lower cost. It also has to its credit a large pool of tech savvy workers with cultural compatibility to Western Europe. Among the top companies that have set up shop here are the likes of TCS, EDS and IBM. In a deal worth $35.54 million, IBM was to create approximately 700 service centre jobs, which include financial services, procurement, human resources and call centre positions.
6. Czech Republic also boasts of low costs and cultural compatibility combined with good political stability. It is emerging as an ideal destination to service the German market.
7. Russia is emerging as a preferred destination for outsourcing of complex R&D problems for most global corporations. The IT companies here are built on the “boutique” approach, which focuses on the solving of advanced R&D problems. Russia has over 2 million people working in their over 4500 R&D centers, and of these at least 1 million are researchers and scientists. This pool of highly educated and talented workers known for their unconventional approach and complex problem solving capabilities has attracted companies to outsource their R&D work to Russia. The companies with a presence here include Bechtel, IBM, Intel, Boeing, Microsoft, Sun Microsystems and Motorola.
8. South Africa is one country that is slowly emerging as an outsourcing destination that is taking advantage of increased competition worldwide. South Africa is advantageous to the UK market as it lies in the same time zone and has a similar culture. It has to its advantage good infrastructure; call center operation capabilities and mastery over the English language.
9. Mexico is increasingly becoming a preferred destination to service Spanish speaking populations. Big companies like Accenture, IBM and EDS have a significant presence here.
10. Poland is another country favored by the German companies as it has a large base of German and English speakers. Its advantages as an outsourcing destination lie in its cultural and time zone compatibility for Western Europe.
Article published in December 2006.
For small businesses and entrepreneurs in the United States, the great market potential and talent pool that they find around themselves is often counterbalanced against high costs of doing business. Even a low-level employee doing menial tasks expects to be paid significantly more than most working people in the world would ever dream of making, and things like government-mandated benefit payments only make things even more complicated and expensive. While hiring within the United States is often the simplest thing to – and is still economically feasible for most established companies – companies that are trying to break into the market often need a little cost-effectiveness edge to help them maximize their limited resources.
For this reason, and largely as a result of improved communications technologies, many emerging companies turn to outsourcing whenever they can, as doing so allows them to cut costs substantially. However, remember that outsourcing can be a dangerous prospect: you may be able to find the same quality of labor at a reduced price, but you could also be getting exactly what you are paying for by domestic standards. To carry out a winning outsourcing strategy, one of the first things you must do is know which countries to focus on.
India
One of the biggest problems that come with outsourcing is the matter of communication. You may be able to find a skilled worker who is happy to work for $10 or $20 per day, but such workers may or may not have respectable English. One of the principal advantages of outsourcing to India is that the country has a massive number of people who speak English very well – about 10% of the population.
Philippines
Just as British imperialism led to the above-par English-speaking level of India, American imperialism delivered the same result in the Philippines – with about 55% of Filipinos speaking English very well. Another advantage of working in the Philippines is that Filipinos have more of a tendency of understanding and meshing with Western business culture
China
In recent years, China has emerged as the factory of the world. Its strong infrastructure and culture of hard work ethic coupled with relatively low labor costs have made it a favorite for Western countries. However, only about 5% of China speaks English, and those who do tend to be managers and supervisors. China is a great place for many types of outsourcing, but not for the customer service and IT support common to India and the Philippines.
Bulgaria
Since the time of the Soviet Union, Bulgaria has been an industry center for IT and software development. Couple this with the fact that about 15% of Bulgarians speak English and the relatively low labor costs, and you can see why many companies in the United States, Canada, and Western Europe outsource software development to Bulgaria.
Indonesia
While Indonesia went through some serious economic problems in the 1990s, it is now one of the world’s fastest growing – and largest – economies. Its growth and economic diversity make it a prime destination for outsourcing and business expansion alike. However, the relatively low number of people in Indonesia who speak English – and the general lack of Westerners who speak Bahasa Indonesia – can result in a significant linguistic barrier.
Singapore
As a booming hub of both technology and world trade, Singapore is one of the best places to go for certain types of outsourcing. On top of this, consider its business-friendly culture and environment and the fact that roughly 80% of the population speaks English. However, one drawback to outsourcing to Singapore is the fact that labor costs there are often higher than in Western countries.
While a well-executed outsourcing strategy can drastically improve business operations and maximize resources, a poorly executed strategy can alienate customers, frustrate momentum, and destroy legitimacy. Take full account of the positive and negative aspects of outsourcing company tasks to various countries before proceeding, as making such an operational shift is a potentially expensive decision.
A Global Outsourcing Review | Jockeying For Global Position
Over the prior decade India has clearly emerged as a country-wide outsourcing success story. The South Asian outsourcing destination booked $22 billion in business in 2006 by answering customer phone calls, managing computer networks, processing accounting transactions and writing custom application software for companies from all over the world. Other developing countries see what outsourcing has done for India's economy, such as creating more than 1.4 million jobs during the past decade, and want to replicate that success for themselves. "National and even regional governments are making increasingly sophisticated efforts to attract offshore IT services," says Paul Laudicina, head of the Global Business Policy Council at A.T. Kearney Inc.
Compared with capital-intensive and high maintenance manufacturing businesses, IT (information technology) and service businesses are faster and cheaper to set up and normally generate scores more jobs per dollar invested. Further, the jobs are at the high end of the pay scale and the IT and professional services sectors are exploding. Analyst firm Gartner estimates offshore information technology and business-process outsourcing (BPO) reached $34 billion in 2005 and may double by the end of 2007. India's 60 percent market share of the global pie is certain to decline, in large part because the country's success is driving up wages and job turnover dramatically. India's demonstration of success and growing pains leave much room for other nations to stake their claims. By 2007, Gartner estimates that other offshore locations will attract in a combined $30 billion from outsourced services work.
Region
Central Europe
Southeast Asia
and Caribbean
and Africa
Some of the most talked about contenders in the global IT and BPO outsourcing race are the large rapidly developing countries attempting to leverage low wages and abundant labor pools into offshore services. China stands in strong position thanks to its very large numbers of human resources and proven success in attracting manufacturing work. China is now aggressively pursuing India's highly lucrative IT and BPO work. Russia, Brazil, Argentina and Mexico are similarly blending a mix of government and private sector efforts to offer low costs and comparable skills with India's, and with the added advantage of being closer in proximity to the United States and European Union markets.
Not too be left behind, even very small countries such as Nicaragua, Costa Rica, Botswana, and Sri Lanka are vying for their piece of the global market. To effectively compete, these countries have organized efforts which send trade missions to outsourcing expositions, modernize the university curriculums, subsidize technical training, jump start office complexes and offer attractive tax benefits. "From the President down to the worker, this is a top priority for us," says Juan Carlos Pereira, executive director of the Nicaraguan trade promotion agency ProNicaragua. Nicaragua hosts three small telemarketing groups and an employee support center for the Latin American operations of Spanish telecom giant Telefónica. Hourly wages are about 75 percent higher than Indian wages, however, but only half the cost of neighboring countries Costa Rica and Panama. Pereira hopes to announce a call-center deal with a large U.S. Internet enterprise by March which he believes will create about 4,000 call center agent positions by 2009.
The economic and social benefits gained from remote outsourcing and offshore workers go far beyond the immediate IT and service jobs. India's software industry association, Nasscom, estimates that each new offshore worker in the information technology sector creates about seven indirect jobs, which include everything from janitors to security guards to suppliers. "Everybody wants to get into the game because it's a virtuous economic development model," says Nasscom Vice-President Sunil Mehta. However, to effectively compete requires long term planning and plenty of cooperation. Countries must normally improve their infrastructures and utilities, including telecommunications, airports, universities and medical services. Similarly, countries may have to bring their business laws and intellectual property compliance measures up to the 20th century.
Even with strategic planning, government funding and coordinated execution, the competitive landscape is fierce and success is far from guaranteed. Rivals have yet to achieve India's scale and experience which makes it difficult to differentiate themselves to win customer contracts, says Kris Wadia, a London-based partner at Accenture. Nonetheless, each country is finding its niche and jockeying for a defined position. Egypt is branding itself as a low-cost specialist in European language call centers. Dubai and Singapore claim their modernization, safety and legal systems give them an edge in handling information security and business continuity service operations. The Philippines, a former U.S. colony, draws on long-standing cultural ties and fluent English skills to snare North American call center contracts. Central and South American countries use their near shore proximity and Spanish language skills to pursue call center contracts for the Hispanic market in the United States.
Smaller countries are also taking advantage of a increased desire for outsourcing diversification by global companies. "Companies do not want to put all their eggs in one basket, as far as India is concerned," says Michael Henderson, Asia managing director for Tampa-based call-center operator Sykes Enterprises, which operates 37 facilities from Costa Rica to the Philippines. U.S. companies are also adding near-shore locations which reside only a few hours away by air and are often in the same time zones. For U.S. outsourcer's, that means Central and South America, where back-office operations are blossoming from Mexico to Argentina. Similarly, European Union companies are turning to Central and Eastern Europe, the Middle East, and Africa for near shore opportunities.
Russia is also attempting to cater to the near shore trend. However, it's focusing its aim at high-end software programming jobs. Taking advantage of its strong engineering culture dating back to the cold war, Russia is cultivating its underemployed talent which normally costs about one-fifth as compared to U.S. programming resources. A few local software development companies have emerged, including Moscow-based ITCI and a firm called DataArt that employs engineers in St. Petersburg and a head office in New York. None of the Russian upstarts have yet matched the success of Moscow's Luxoft, which acquired high-profile technical jobs to develop a document management system for Boeing and a sophisticated customer management tool for Deutsche Bank. "We offer quality, dedication, and most of all, stability, which is difficult to find in India," says Luxoft CEO Dmitry A. Loschinin.
Surprising many has been the rise of several Africa countries as an outsourcing destinations. Led by South Africa, which has garnered more than 500 call centers serving companies such as Lufthansa and General Electric in English, Dutch, and other languages, other African countries are positioning themselves as outsource destinations. Cairo-based Xceed Contact Center handles calls in Arabic and several European languages for Microsoft, General Motors and Oracle. The latest hopeful is Botswana, which is promoting strong English language skills, a strong bond rating, favorable tax breaks and financial subsidies for training to attract call centers.
The dramatic increase in the number of new outsourcing locations is forcing existing providers to spread their operations and get even more global. U.S. companies such as IBM and Accenture are growing their operational presence in Central Europe and Brazil. Indian giants such as Infosys and Tata are acquiring or opening new operations in China, Europe and South America. The second largest Mexican outsourcing company, Neoris, which operates in Monterrey and Rosario, Argentina, is now opening a new facility in Budapest to accommodate European customers. "The point is to serve customers wherever they are," says Carlos Castilla, VP for services outsourcing at Neoris.
//z 2013-02-17 17:51:32 IS2120@BG57IV3.T3397092625.K[T140,L1791,R59,V1981]It’s the top complaint of one of the city’s fastest growing industries: tech companies can’t find enough engineers and computer programmers for their growing businesses.
But the companies that take greatest advantage of a government program to import foreign talent to fill those roles are also the ones in the business of taking jobs out of the country.
“What we’ve got basically is an immigration system here that’s speeding up the off-shoring of jobs,” said Ron Hira, a professor at the Rochester Institute of Technology and leading critic of the program.
The H1-B visa allows employers to sponsor immigrants who are qualified in specialized fields to come work in the U.S. for up to six years. It also covers fashion models.
Of the top-10 businesses approved by the Labor Department in the first step of the H1-B process last year, eight had outsourcing operations.
Critics contend that these outsourcing firms use the H1-B to bring cheaper labor into the country for the fraction of their work that needs to be done on-site in the U.S. But those in favor say it takes the best minds from around the world, and adds them to the U.S. workforce, growing both the companies and the economy.
There are only a limited number of H1-B visas, total, available every year—85,000. They are first come, first serve. And, they run out fast.
Next year’s supply ran out just 10 weeks after becoming available. That means companies that want to bring in workers after the cap has been filled must wait until the next application period, when the next 85,000 visas become available.
The program also allows immigrants to apply for permanent residence, while on the visa.
The ‘New Arms Race’
“The new arms race is the brain race, for the 21st century,” said Rey Ramsey, the president of the tech lobbying organization TechNet. “And it’s about racing to bring that brain power into America, and then hopefully, roll out the welcome wagon and have many of these individuals become Americanized and become U.S. citizens.”
Politicians are taking up the call, including both President Barack Obama and his GOP challenger Mitt Romney. Both have called to raise the cap for specialty worker visas.
Mayor Michael Bloomberg wants to go farther.
“This is just absurd to deny American companies access to the workers they need,” Bloomberg said at the Chamber of Commerce last year. “The government doesn’t know how many skilled workers are needed each year—only the market does. So let the markets work. And you can do that by eliminating the cap on H1 visas.”
Few lawmakers advocating for an increased cap have addressed the outsourcing issue, though. Obama was confronted with it during an online town hall in January.
Jennifer Wedel, the wife of an unemployed semiconductor engineer, asked the president: “My question to you is why does the government continue to issue and extend H1-B visas when there are tons of Americans just like my husband with no job?”
“I'd be interested in finding out exactly what's happening right there because the word we're getting is that somebody in that kind of high-tech field, that kind of engineer, should be able to find something right away,” Obama said. “And the H1-Bs should be reserved only for those companies who say they cannot find somebody in that particular field.”
The H1-B program does not have any requirement that companies search publicly for a U.S. worker before turning to the visa program.
A Program With Loopholes
Hira, the professor and program critic, thinks the lack of a job search requirement is one of a number of loopholes in the program, the most prominent being loose wage requirements.
“Because they can legally pay below market wages to those H1-B workers, there’s a strong financial incentive to substitute American workers with H1-B workers,” Hira said.
In last year’s applications, New Jersey-based outsourcer Cognizant Technologies offered to pay about $61,000 for computer systems analysts—$16,000 lower than the national average.
In a 2011 Government Accountability Office report, companies reported the full H1-B process costs from about $2,500 to above $7,500 for each application.
Spokesmen for several of the top outsourcers either did not respond to requests or declined to comment, including Cognizant, Tata Consultancy Services and Accenture. But, they’re all part of NASSCOM, the trade organization representing the Indian IT sector.
NASSCOM vice president Ameet Nivsarkar echoed a familiar theme: it’s not about money, but rather companies finding talent that doesn’t exist locally.
“For them, there is no option but to move talent from overseas. And that talent is extremely expensive,” he said. “You have to pay for insurance, you have to pay for health; you have to pay for travel; you have to pay for relocation. So, all of those expenses get added to the company.”
For several of these firms, the vast majority of their U.S. employees are on H1-Bs and other temporary work visas—as many as 90 percent, according to an analysis by CLSA, a brokerage firm that tracks the Asian market.
“It’s annoying but I don’t think it’s unfair,” said Rick Webb, a tech entrepreneur who currently consults for Tumblr and has worked for a company that applied for the visas. “I think that’s a market that’s grown to adapt to the inefficiencies of the system.”
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