· Outsourcing confidence grows amid recession
31 Jul 2009 from: www.senso-sourcing.com
Forty percent of outsourcing suppliers are more confident in the UK market than they were in 2008, according to the National Outsourcing Association (NOA).
The NOA's latest research showed an 8% growth in outsourcing spending over the last year. The IT outsourcing market grew 12% and business process outsourcing grew6%.
The extension of existing contracts had the greatest impact on outsourcing service providers' turnover, according to 40% of respondents. Ninety per cent of respondents said customers taking outsourced work back in house had a low impact.
The most common contracts types also changed over the last year. Outsourcing contracts have decreased in length according to 18%. But 90% of respondents say the value of contracts have remained the same or increased.
Martyn Hart, Chairmen of the NOA, said outsourcing has always been seen as a way for a business to cut costs, and should not be surprising the industry continues to grow.
"However, with the increased pressure on companies to cut costs, many are pushing through higher volume low-cost contracts, over shorter time frames, which more often than not sets the outsourcing contract up to fail" he said.
Asian countries lead list of top outsourcing destinations
India and China are the top destinations for outsourcing activities, but other countries from the region, like Malaysia and Philippines, are fast establishing themselves as solid alternatives.
By Jack Loo, Computerworld Singapore
May 06, 2008India and China are the top destinations for outsourcing activities, but other countries from the region, like Malaysia and Philippines, are fast establishing themselves as solid alternatives.
An annual ranking study, Global Outsourcing 100, by the International Association of Outsourcing Professionals (IAOP), puts India, China and countries from the Asia Pacific rim, as top locations. The report shows that more than 60 per cent of companies, recognized in its Rising Star category of companies with fast annual growth of more than 33 per cent, are mainly from the Asian-Pacific region.
"The remarkable rise in the number of companies from Asia, especially from China, who were considered for the Global Outsourcing 100 shows that the power balance in the outsourcing industry is shifting," said Jagdish Dalal, IAOP's managing director, thought leadership, who led the judges' panel.
The IAOP results have interesting parallels with the January 208 IT Nation study - a survey conducted by Fairfax Business Media's MIS Asia magazine - of more than 300 CIOs and senior IT executives from Hong Kong, Thailand, Philippines, Malaysia, Singapore and Indonesia. IT Nation respondents voted Malaysia as the surprise top destination, ahead of China and India.
The IT Nation report cites Malaysia's economic stability, its diverse language skills and the investment the government has made, in the Multimedia Super Corridor and Cyberjaya, to establish the country as a regional IT hub, as key reasons for its top position.