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Perils of Offshore Outsourcing
from: john parker
Offshore outsourcing has gradually moved ahead and established itself as a cost-cutting, cost effective quality service aimed ate meeting Business needs. According to International Data Corporation (IDC), US-based companies will triple their offshore outsourcing spending from $5.5 billion in 2000 to more than $17.6 billion in 2005!
The offshore outsourcing trend has crossed all the barriers of language and cross-culture difference and has proved itself as a master in industry-standard, high-quality service together with decisive cost-advantage. What really matters is quality and on-time delivery of offshore outsourcing sevices to the clients.
Protecting you job from offshore outsourcing:
Prediction by industry analysts says that the IT outsourcing drain that is demotivating U.S. employment levels/standards will dissipate by 2005. In the meantime, here are some steps to make sure your job isn't lost. The recent rush of companies outsourcing to offshore suppliers is presenting many IT professionals with an unprecedented career challenge. All told, by the end of 2004, one in 10 IT jobs in IT companies and one in 20 IT jobs at non-IT companies will have moved offshore, according to Gartner.
However, Projections by the U.S. Bureau of Labor Statistics (BLS), along with a recent Aspen Institute study, indicate a dramatic shrinkage in the members of what is called the "prime-age work pool" (people between the ages of 25 and 54) that are properly trained and educated to address the growing demand for IT professionals.
“The seven fastest-growing occupations this decade will all be in technology.” –BLS
Steps:
1. Learning to acquire IT requirements analysis
Requirement analysis is the process by which current business environment is modeled in terms of the processes and the requirements of a system to be developed are identified. Acquiring business skills become important as they are needed to remain ahead in the competitive market.
2. Maximize IT ROI
Through strategies such as improvement in the strategic levels of management and increasing performance-based contracting a business process can maximize the ROI.
3. Learn IT contract management
with an outstanding growth in the outsourcing comes a growing need for human resources that are needed to outsource the jobs. Hands on experience contract management will be an added advantage.
4. Business process design
Business process designers review and redesign the business processes and suggest changes for improvement of the existing workflows and work practices.
5. Learn IT business relationship management
In today’s complex business relationships; relationship managers are the facilitators are helpful in building and maintaining the critical relationships. The increase in offshore outsourcing, increases the need for skilled business relationship managers within the companies that outsource, and almost all of them need to balance and coordinate all of the relationships for maximum results and ROI.
About the author:
The article is posted by John Parker from A-1 Technology, Inc, an offshore outsourcing company.
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