Diversifying selection criteria are changing outsourcing landscape

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Diversifying selection criteria are changing
outsourcing landscape
Buyers tend be more selective and strategic in
the way they approach outsourcing
Growing complexity in outsourcing decision

• Direct labor cost is not everything
• Labor cost accounts for only 23 of overall costs
• Focusing on raw labor cost often ended up
  underestimating hidden costs and undermining
  quality and timely delivery of service

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The trend indicates clear focus on quality,
accessibility to customers and employee attrition
Behind outsourcing success are untold stories
about overcoming challenges and managing risks
beyond cost reduction

• Growing important of providers proven track
  record and guaranteed service levels,
  time-to-market and flexibility
• Reducing risk by multi-sourcing, multi-location,
  due-diligence over hidden costs employment,
  governance,
• Growing concern around working environment

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Dubais economy landscape shows strong growth in
Finance, real estate, energy

• the unprecedented growth rate of the local
  investment market that has been the pattern since
  the establishment of Dubai Financial and
  International Financial Markets.
• Real Estate is a rapidly growing business in the
  UAE with new residential and commercial units
  being constructed at a pace that seems to only
  just keep up with surging demand, both from
  prospective occupiers and investors

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Growing industry base opens a new window of
outsourcing opportunity in Dubai
Strong opportunities for outsourcing in the region

• Significant trend of major outsourcing contract
  awards, particularly in the government sector,
  which remained at the forefront of spending
• Banking is the single largest industry vertical
  in terms of IT investments, which was evidenced
  by very high level of interests outsourcing from
  finance sector

(The UAE business forecast report, BMI, 2007)
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In spite of high living expenses, Dubai provides
attractive environment for outsourcing

• Geo-political stability
• Regulatory support Free zone environment
• Developed city infrastructure lifestyle
  attracting talent from other countries

• Fast growing industry landscape, fast pace to
  maturity
• Needs for outsourcing evolves quickly

• Easy access to multinational business base
• Higher level of multicultural talent pool
• Much lower attrition rate

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However, the key issues still need to be
addressed to position Dubai as an outsourcing
destination
Three major challenges for Dubai to be an
outsourcing destination
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• Thank You