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IT Offshore Outsourcing Jeremie Pechmann Katie Ralls Tim Wahlquist Wensheng Qiu.

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Presentation on theme: "IT Offshore Outsourcing Jeremie Pechmann Katie Ralls Tim Wahlquist Wensheng Qiu."— Presentation transcript:

1 IT Offshore Outsourcing Jeremie Pechmann Katie Ralls Tim Wahlquist Wensheng Qiu

2 Off-Shore Outsourcing Project Topics: Offshore Background Offshore Background India India China China Boeing Boeing

3 What is Offshore IT Outsourcing? “ The exporting of IT-related work from the United States and other developed countries to areas of the world where there is both political stability and lower labor costs or tax savings.” Source: Whatis.com

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6 www.seattlepi.nwsource.com/business/164018

7 www.searchcio.techtarget.com/qna Why Outsource? Why Outsourcing CostTimeBenefitsRisksQuality

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9 www.offshoreitoutsourcing.com/Documents/it_outsourcing_vendors_evaluation Top 5 Outsourcing Objectives

10 www.rosourcing.com/trends Trends services being outsourced

11 www.mckinseyquarterly.com/article_abstract.aspx?ar=1453&L2=7

12 http://commonziffdavisinternet.com/download/0/2216

13 Researchers Say… Meta Group Offshore outsourcing will grow from $7 billion currently to more than $10 billion by 2005. Gartner Inc. According to Gartner research, 5% of IT jobs have gone overseas, and 25% will be "offshored" by 2010. Gartner Inc. According to Gartner research, 5% of IT jobs have gone overseas, and 25% will be "offshored" by 2010. Forrester Research Respondents in a survey of 145 IT decision- makers at North American companies rated offshore providers better than U.S. firms 67% of the time in terms of quality and timeliness. Forrester Research Respondents in a survey of 145 IT decision- makers at North American companies rated offshore providers better than U.S. firms 67% of the time in terms of quality and timeliness.

14 www.cio.com/qna How to Outsource Create a multi-year plan, with quarterly reviews that includes creating, incubating and growing your development center Create a multi-year plan, with quarterly reviews that includes creating, incubating and growing your development center Choose the location after spending time to evaluate and study the pros and cons Choose the location after spending time to evaluate and study the pros and cons Understand how the local culture thinks and behaves Understand how the local culture thinks and behaves Take a long term view (5 to 8 years) Take a long term view (5 to 8 years)

15 www.searchcio.techtarget.com/qna Gartner Picks Best Offshore Destinations India China Malaysia Czech Republic Singapore Philippines Brazil Russia

16 OffshoreITOutsourcing.com/vendor_selection Vendor Selection 1) Identifying areas that you wish to outsource 2) Researching list of vendors you wish to shortlist 3) Do a thorough analysis of each of the vendors for their expertise, financial stability, history in executing outsourced projects 4) Internal or external consultants 5) Getting in touch with the short listed companies for a preliminary interaction

17 www.wipro.com/aboutus/odc/odcresources.htm Offshore Venue Comparison

18 www.idc.com/getdoc.jsp;jsessionid=3SGPQX Offshore Venue Comparison

19 Today’s Situation Many Companies are jumping into the Outsourcing bandwagon with a ‘me too’ attitude. Many Companies are jumping into the Outsourcing bandwagon with a ‘me too’ attitude. Cost reduction is the main driving force. Cost reduction is the main driving force. Lack of understanding of local issues and culture will cause these operations to fail. Lack of understanding of local issues and culture will cause these operations to fail.


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