it outsourcing trends across the globe

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  • TOP JOBSOUTSOURCED

    IT OUT$OURCINGEXPENDITURE

    TRENDS, BENEFITS, STATS, FUTURE,AND A BRIEF LOOK AT DGT

    MORE THAN2.4 MILLION JOBSOUTSOURCED FROM THE US

    IN LAST 10 YEARS.

    Information Technology

    28%32%

    11%

    14%

    15%Human Resources

    Sales and marketing

    Financial Services

    AdministrativeOutsourcing, etc.

    Source: IMF World Economic Outlook data, Hackett Group proprietary data and publically available company data

    ESTIMATED2002

    TO

    TA

    L

    JO

    BS

    2012 2014 2016

    8.3million

    6.8million

    6.8million

    6.8million

    4.6 million

    0.3 million

    3.4 million 3.3 million 3.4 million

    1.4 million

    2.0 million

    3.5 million

    1.0 million

    2.3 million

    1.8 million

    1.7 million

    Jobs already offshored from North America and Europe

    Jobs still based in North America and Europe but whichcan be offshored

    Jobs based in North America and Europe which cannot be offshored

    Terminated one or moreoutsourcing agreements.

    Increased outsourcing

    57%

    34%

    9%

    POPULARITYOF

    OUTSOURCINGSince the recession of

    2008-2009

    Restructuredone or moreoutsourcing agreementsin a significant way

    Source: http://brandongaille.com/26-us-outsourcing-statistics-and-trends/

    Source: Deloittes 2014 Global Outsourcing and Insourcing Survey

    PLANS FORIT OUTSOURCING53%

    26%CURRENTLYOUTSOURCINGIT FUNCTIONS

    Source: The IT Outsourcing Statistics 2014/2015 study

    LARGE

    7.4%

    ORGANIZATIONS

    OF THEIRIT BUDGETS

    MID-SIZEORGANIZATIONS

    4.6%OF THEIRIT BUDGETS

    SMALLORGANIZATIONS

    6.1%OF THEIRIT BUDGETS

    TOP OFFSHORINGDESTINATIONS

    TRENDS TOLOOK OUT FOR

    Source: http://brandongaille.com/26-us-outsourcing-statistics-and-trends/

    Source: A.T. Kearneys 2014 Global Services Location Index (GSLI)

    Source: Deloitte's 2014 global outsourcing and insourcing surveyhttp://www2.deloitte.com/us/en/pages/strategy/articles/2014-global-outsourcing-and-insourcing-survey.html

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    2014

    REAS

    ON

    S FOR OUTSOU

    RC

    ING

    Reduce or controlcosts and /or preservecapital

    Gain access toIT resourcesnot availableinternally

    Free up internalresources to

    focus on coreoperations

    Improve business orcustomer focus

    Accelerate companyreorganization/transformation

    Accelerateproject

    Gain access to expertisenot available internally

    Reduce timeto market

    44%

    34% 31%

    22%

    28%

    15%

    15%

    9%

    1.43BILLIONI N D I A

    1.03BILLIONI N D O N E S I A

    780 MILLIONC H I N A

    39 MILLIONP H I L L I P I N E S

    26 MILLIONE G Y P T

    2 MILLIONL I T H U A N I A

    3 MILLIONB U L G A I R A

    INDIA (7.1) 1.43 BILLIONINDONESIA (6.9) 1.03 BILLIONCHINA (6.4) 780 MILLIONBULGARIA (6.4) 3 MILLIONPHILLIPINES (6.3) 39 MILLIONJORDAN (6.2) 2 MILLIONSINGAPORE (6.5) 3 MILLIONTHAILAND (6.0) 39 MILLIONLITHUANIA (5.9) 2 MILLIONEGYPT (5.8) 26 MILLION

    2 MILLIONJ O R D A N

    3 MILLIONS I N G A P O R E

    39 MILLIONT H A I L A N D

    Companies mayseek multi-vendor or

    multi-functional strategies requiring

    transition and service integrationcapabilities

    SOLUTION

    BENEFITS

    HIRING DEDICATED DEVELOPMENT TEAMS

    DIRECT COMMUNICATION WITHTHE DEDICATED DEVELOPERS

    FULL CONTROL OVER THE PROJECT FULL INVOLVEMENTOF TEAM MEMBERS

    COST CUTTING ON HIRING,TRAINING, INFRASTRUCTURE

    EXPANSION ETC.

    CLIENTS ISSUES

    FEEL VENDORS ARE BEING REACTIVE VS. PROACTIVE49%

    FEEL THERE IS LACK OF INNOVATION37%

    Source: Deloittes 2014 Global Outsourcing and Insourcing Survey

    SUYATI TECHNOLOGIESPIONEERS OF DEDICATED GLOBAL TEAM (DGT)

    DGT

    Clients will continue to demand

    more from their vendors

    Vendors would continue to evolve

    their services to fulfill customer needs, and deliver value on both

    qualitative and quantitative terms.

    CREATIVE

    TECHNICAL

    FINANCIAL

    SAY

    DGTGIVES CLIENTSCOMPLETE CONTROL

    KEY ISSUE HOW DGT CAN SOLVE IT

    DELAYS IN SCHEDULE ANDINABILITY TO MEET MILESTONES

    HIDDEN COSTS

    LACK OF APPROPRIATE RESOURCES

    SECURITY ISSUES

    CULTURAL BARRIERS

    COMMUNICATION

    INABILITY OF OUTSOURCINGPROVIDER TO UNDERSTANDCLIENT'S BUSINESS NEEDS

    INFLEXIBLE CONTRACTS

    LACK OF EXIT STRATEGY

    PROVIDES RIGHT INFORMATION AT THE RIGHT TIME, MAKING IT EASY TO FIX CORRECT AND REALISTIC DEADLINES.

    OFFERS TRANSPARENT COST STRUCTURE, ON A COST + MARGIN MODE

    INVOLVES CLIENT IN THE TALENT SELECTION PROCESS

    PROVIDES OVERALL CONTROL; CLIENT CAN SELECT APPROPRIATE PHYSICAL, NETWORK AND VIDEO SECURITY

    CULTURAL TRAINING AND TIMELYFEEDBACK TO COUNTER DISPARITY

    MULTIPLE METHODS TO COMMUNICATE, SUCH AS EMAILS, GO TO MEETING, PIVOTAL TRACKER, TFS, AND SKYPE, ETC.

    DEDICATED TEAM SET UP SPECIFICALLY FOR THE CLIENT'S PURPOSE; FOCUS REMAINS ON THE CLIENTS BUSINESS

    STRAIGHTFORWARD CONTRACTS, WHICH ARE TRANSPARENT AND SCALABLE

    OFFERS OTHER OPTIONS SUCH AS BOT OR JV RELATIONSHIPS IF DGT DOES NOT WORK OUTAS EXPECTED

    48%

    Source: http://brandongaille.com/26-us-outsourcing-statistics-and-trends/

    ADDITIONAL JOBS INFINANCE, IT, AND OTHERKEY BUSINESS SERVICESAREAS WILL BEOFFSHORED BY 2016(HACKETT GROUP)

    VALUE OF OUTSOURCINGIS EXPECTED TOINCREASE TO TOUCH

    IN 2015

    COMPANIES PLAN TO HIRE MOREOUTSOURCERS THAN FULL OR PART TIMESTAFF IN THE NEXT 12-18 MONTHS

    7,50,000$25 BILLION

    FUTUREOF OUTSOURCING

    OFFSHOREOUTSOURCING TOGROW BYMORE THAN

    ANNUALLY(META GROUP)

    20%

    Reference http://www2.deloitte.com/content/dam/Deloitte/us/Documents/strategy/us-%209127988%20global-%20outsourcing%20-survey%20-infographic.pdf http://www.slideshare.net/kmukund7?utm_campaign=profiletracking&utm_medium=sssite&utm_source=ssslideview http://suyati.com/why-dedicated-offshore-team/ http://www.thehackettgroup.com/about/research-alerts-press-releases/2012/03272012-hackett-research-forecasts-offshoring.jsp https://www.maxaur.com/outsource_stat.aspx http://www.computereconomics.com/temp/outsourcingstatisticssamplepages.pdf http://www.meti.go.jp/english/report/downloadfiles/1-2e.pdf http://brandongaille.com/26-us-outsourcing-statistics-and-trends/ http://www2.deloitte.com/us/en/pages/strategy/articles/2014-global-outsourcing-and-insourcing-survey.html http://www.daxx.com/article/IT-Outsourcing-Statistics-Trends-2013-2014 https://www.kpmg-institutes.com/content/dam/kpmg/sharedservicesoutsourcinginstitute/pdf/2014/state-of-outsourcing-2014-exec-findings-hfs.pdf https://www.kpmg-institutes.com/content/dam/kpmg/sharedservicesoutsourcinginstitute/pdf/2014/state-of-outsourcing-2014-exec-findings-hfs.pdf http://suyati.com/engagementmodels/dedicated-global-teams/ http://www.slideshare.net/kmukund7/dedicated-global-teams-sm