Outsourcing

Offshoring Will Climb Through 2016

Posted In Looking in Tech
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Companies in the U.S. and Europe are set to shift an additional 750,000 jobs in IT, finance and other business services to low-cost regions by 2016, according to The Hackett Group. However, the report says the overall trend toward offshoring should slow beginning next year, and could cease by 2022 as corporations simply run out of business service jobs that are appropriate to send to lower-cost markets. The eventual drop in offshoring will challenge Western corporations looking to cut their… continue…

U.S. Workers Outperform Offshore Solutions, But…

Posted In Looking in Tech
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Despite the tech industry’s lament there aren’t enough qualified workers to fill available jobs, a new report found onshore workers outperformed offshore workers on a number of key attributes. But by no means does that mean offshored IT and business process will be returning to the U.S. in waves, according to the report, Around the World and Back Again: Sourcing Services in the USA, by research firm HfS. In its survey of 235 enterprise buyers and 270 outsourcing suppliers, HfS… continue…

U.S. Outsourcing Growth Outpaces Global Rate

Posted In Looking in Tech
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Growth in global IT outsourcing is slowing more than previously thought, according to Gartner. The researcher expects a 2.8 percent increase, to $288 billion, in the global outsourcing market in 2013, and a 5.4 percent compound annual growth rate through 2017. However, for North America Gartner puts the growth rate at 8 percent this year and sees a 6 percent CAGR through 2017, largely because of infrastructure-as-a-service, hosting, and co-location deals. Cloud computing has a lot to do with it,… continue…

Can Automation Help Outsourcers Without Hurting Jobs?

Posted In Looking in Tech
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Amid predictions that the proposed immigration reform bill will end up sending more tech operations offshore, lost is the idea that the measure will force outsourcers to find new ways to maintain their competitive advantage, including more ways to work remotely and employ automation. That led Gartner analyst Frances Karamouzis to say in a recent webinar, “We do think that innovative approaches will come around.” That’s already happening at Infosys, which in April announced a partnership with New York-based IPSoft,… continue…

More Companies Return Technology Jobs to the U.S.

Posted In Looking in Tech
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Rural Sourcing’s software development center in Jonesboro, Ark., can’t match the savings offered by big offshore outsourcing firms. Nevertheless, RSI is seeing an increase in clients that want to keep work closer to home or bring it back from overseas. Last year, 30 percent of RSI’s business was tech work returning onshore, says CEO Monty Hamilton. The company, which specializes in software development, support and maintenance for business applications, is among a number of rural sourcing startups that provide IT… continue…

GM Poised to Hire Thousands as It Insources IT

Posted In Looking in Tech
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General Motors will hire as many about 8,500 IT workers worldwide over the next three to five years, with one of its new IT centers located in Austin. The hiring is part of the company’s three-year plan to “insource” much of its IT work, ending contracts with many third-party service providers in a move to regain more control over its technology efforts. Newly installed CIO Randy Mott wants to return everything from data centers to software development into the fold.… continue…

Report: CIOs to Accelerate Outsourcing in 2013

Posted In Looking in Tech
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CIOs are outsourcing crucial business tasks more than ever before. A survey of more than 200 IT decision-makers from small businesses to large enterprises found that 32 percent of organizations will increase their IT outsourcing investments in 2013. Some other headlines from market research firm Bluewolf’s report: 48 percent of the average outsourcing budget is spent on application services. 48 percent of organizations will hire more contractors, rather than full-time staff in      the next 12-18 months. 16 percent of all outsourced data… continue…

How to Outsource Your Game Development

As a well-paid developer in a country that has seen many jobs travel overseas, you wouldn’t expect me to be a fan of outsourcing, but I am. First, outsourcing doesn’t always mean the work goes offshore and, second, from a business perspective it can make sense. The main driver is the diversity of our global economy. Developers living in countries where it’s far cheaper to live can, via the Internet, easily undercut Western developers, who have considerably higher expenses. Fortunately… continue…

Harley-Davidson Moves Some Tech Jobs to InfoSys [DiceTV]

Posted In Looking in Tech
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Harley-Davidson is cutting 125 IT positions, though some of them may be transferred to outsourcer Infosys. The move is not going over well in the tech community.

Six Outsourcing Stories to Challenge Your Opinion

Posted In Looking in Tech
Our story about Harley-Davidson’s decision to outsource a number of IT jobs to Infosys has generated quite a discussion, as evidenced by the comments people have added to it. The story represents a perfect storm on the subject of outsourcing: Not only are jobs being lost, but they’re being lost from a company that many people regard as All-American. That hurts. (In fairness, I should point out that as part of the deal, Infosys committed to hiring some of the… continue…