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The Offshoring Opportunity

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1 The Offshoring Opportunity
Shyamanuja Das Global Outsourcing

2 What is Global Outsourcing?
A cross media information product (print & online) targeting senior executives in global corporations responsible for devising and executing global service delivery strategies

3 The Big Picture The World is Flat Three Billion New Capitalists
Flight of the Creative Class Elephant Rising

4 We were skiing on the north side of Lake Tahoe in California, where he lives. On the lift he asked if I would consider coinvesting with him in a local snow-removal company. "What do you mean by snow removal?" I asked, somewhat surprised because my son is a high-level software developer. "Well," he explained, "the company has contracts to plow the parking lots and access roads of the hotels and vacation condominiums around here whenever it snows, and that happens pretty frequently between November and May." "But what on earth are you doing," I exclaimed, "going into something as mundane as snow plowing?" Contd……

5 "Dad," he said, "they can't move the snow to India."
It took a minute for that to sink in. It had never occurred to me that my son had anything to fear from India or anywhere else in terms of his career path. It was I, after all, who had advised him to go into computer science, secure in the knowledge that it would put him in a position to write his own ticket. When I asked if his job was in any danger, he thought it unlikely but noted that "outsourcing" is the new management buzzword. Three Billion New Capitalists by Clyde Prestowitz

6 Offshoring => Outsourcing
Offshoring’s share in Outsourcing below 5% in 2003 to reach 20% in 2008: Gartner IT/Business services outsourcing to grow four times faster than average global services exports in , reaching 10 percent of global services export in 2008: WTO “They will never get any contract from me, unless they go to offshore locations like India” – CIO of a Top Three European auto component company, commenting on European outsourcing vendors


8 Top Choices for Outsourcing - 2004
USA India China Russia Philippines Mexico Canada Source: DiamondCluster Global IT Outsourcing Study 2004

9 Top Choices for Outsourcing - 2005
India US UK Canada Philippines Eastern Europe Ireland Mexico Latin America China Source: DiamondCluster Global IT Outsourcing Study 2005

10 So what are the trends? India beats US as the top location of Choice
China drops from No 3 to No 10, but No 3 in a horizon of 3-5 years New destinations show up in RADAR screen: Eastern Europe, Latin America Near-shoring is becoming hot again Offshoring is a global game

11 Which is the Next India? Many

12 Locations & Positioning
India: Whatever can be offshored… China: The Cost King The Philippines: Voice of America Russia: Value Game Eastern Europe: European Brotherhood North Africa: Some like it French

13 Locations & Positioning
South Africa: On Her Majesty’s Service Mexico/Latin America: A Hispanic Story Canada: Poor (and not so poor) man’s USA Australia: West in the East Singapore: Control the Region Pakistan & Bangladesh: My favorites

14 So what should be our strategy?
Keep up the good work Maths, Science education Global Knowledge, Global Culture Continue the Middle Path: discipline and freedom English Communication, May be a new three language formula

15 Thank You

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