IT Offshore Outsourcing

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IT Offshore Outsourcing

• Jeremie Pechmann
• Katie Ralls
• Tim Wahlquist
• Wensheng Qiu

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Off-Shore Outsourcing Project

• Topics
• Offshore Background
• India
• China
• Boeing

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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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Why Outsource?
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Top 5 Outsourcing Objectives
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Trends services being outsourced
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Researchers Say

• Meta GroupOffshore 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.
• Forrester ResearchRespondents 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.

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How to Outsource

• 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
• Understand how the local culture thinks and
  behaves
• Take a long term view (5 to 8 years)

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Gartner Picks Best Offshore Destinations

• India
• China
• Malaysia
• Czech Republic
• Singapore
• Philippines
• Brazil
• Russia

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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

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Offshore Venue Comparison
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Offshore Venue Comparison
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Todays Situation

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