Trends in IT outsourcing

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<ul><li><p>TOP JOBSOUTSOURCED</p><p>IT OUT$OURCINGEXPENDITURE </p><p>TRENDS, BENEFITS, STATS, FUTURE,AND A BRIEF LOOK AT DGT</p><p>MORE THAN2.4 MILLION JOBSOUTSOURCED FROM THE US</p><p>IN LAST 10 YEARS.</p><p>Information Technology</p><p>28%32%</p><p>11%</p><p>14% </p><p>15%Human Resources</p><p>Sales and marketing</p><p>Financial Services</p><p>AdministrativeOutsourcing, etc.</p><p>Source: IMF World Economic Outlook data, Hackett Group proprietary data and publically available company data</p><p>ESTIMATED2002</p><p>TO</p><p>TA</p><p>L </p><p>JO</p><p>BS</p><p>2012 2014 2016</p><p>8.3million</p><p>6.8million</p><p>6.8million</p><p>6.8million</p><p>4.6 million</p><p>0.3 million</p><p>3.4 million 3.3 million 3.4 million</p><p>1.4 million</p><p>2.0 million</p><p>3.5 million</p><p>1.0 million</p><p>2.3 million</p><p>1.8 million</p><p>1.7 million</p><p>Jobs already offshored from North America and Europe</p><p>Jobs still based in North America and Europe but whichcan be offshored</p><p>Jobs based in North America and Europe which cannot be offshored </p><p>Terminated one or moreoutsourcing agreements.</p><p>Increased outsourcing</p><p>57%</p><p>34%</p><p>9%</p><p>POPULARITYOF</p><p>OUTSOURCINGSince the recession of</p><p>2008-2009</p><p>Restructuredone or moreoutsourcing agreementsin a significant way</p><p>Source: http://brandongaille.com/26-us-outsourcing-statistics-and-trends/</p><p>Source: Deloittes 2014 Global Outsourcing and Insourcing Survey</p><p>PLANS FORIT OUTSOURCING53%</p><p>26%CURRENTLYOUTSOURCINGIT FUNCTIONS</p><p>Source: The IT Outsourcing Statistics 2014/2015 study</p><p>LARGE</p><p>7.4%</p><p>ORGANIZATIONS</p><p>OF THEIRIT BUDGETS</p><p>MID-SIZEORGANIZATIONS</p><p>4.6%OF THEIRIT BUDGETS</p><p>SMALLORGANIZATIONS</p><p>6.1%OF THEIRIT BUDGETS</p><p>TOP OFFSHORINGDESTINATIONS</p><p>TRENDS TOLOOK OUT FOR</p><p>Source: http://brandongaille.com/26-us-outsourcing-statistics-and-trends/</p><p>Source: A.T. Kearneys 2014 Global Services Location Index (GSLI)</p><p>Source: Deloitte's 2014 global outsourcing and insourcing surveyhttp://www2.deloitte.com/us/en/pages/strategy/articles/2014-global-outsourcing-and-insourcing-survey.html</p><p>Sour</p><p>ce: h</p><p>ttp:</p><p>//w</p><p>ww</p><p>.dax</p><p>x.co</p><p>m/a</p><p>rtic</p><p>le/I</p><p>T-O</p><p>utso</p><p>urci</p><p>ng-S</p><p>tatis</p><p>tics-</p><p>Tren</p><p>ds-2</p><p>013-</p><p>2014</p><p>REAS</p><p>ON</p><p>S FOR OUTSOU</p><p>RC</p><p>ING</p><p>Reduce or controlcosts and /or preservecapital</p><p>Gain access toIT resourcesnot availableinternally </p><p>Free up internalresources to</p><p>focus on coreoperations</p><p>Improve business orcustomer focus</p><p>Accelerate companyreorganization/transformation</p><p>Accelerateproject</p><p>Gain access to expertisenot available internally </p><p>Reduce timeto market</p><p>44%</p><p>34% 31%</p><p>22%</p><p>28%</p><p>15%</p><p>15%</p><p>9%</p><p>1.43BILLIONI N D I A</p><p>1.03BILLIONI N D O N E S I A</p><p>780 MILLIONC H I N A</p><p>39 MILLIONP H I L L I P I N E S</p><p>26 MILLIONE G Y P T</p><p>2 MILLIONL I T H U A N I A</p><p>3 MILLIONB U L G A I R A</p><p>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</p><p>2 MILLIONJ O R D A N</p><p>3 MILLIONS I N G A P O R E</p><p>39 MILLIONT H A I L A N D</p><p>Companies mayseek multi-vendor or </p><p>multi-functional strategies requiring </p><p>transition and service integrationcapabilities</p><p>SOLUTION</p><p>BENEFITS</p><p> HIRING DEDICATED DEVELOPMENT TEAMS</p><p> DIRECT COMMUNICATION WITHTHE DEDICATED DEVELOPERS</p><p> FULL CONTROL OVER THE PROJECT FULL INVOLVEMENTOF TEAM MEMBERS</p><p> COST CUTTING ON HIRING,TRAINING, INFRASTRUCTURE</p><p>EXPANSION ETC.</p><p>CLIENTS ISSUES</p><p> FEEL VENDORS ARE BEING REACTIVE VS. PROACTIVE49%</p><p> FEEL THERE IS LACK OF INNOVATION37%</p><p>Source: Deloittes 2014 Global Outsourcing and Insourcing Survey</p><p>SUYATI TECHNOLOGIESPIONEERS OF DEDICATED GLOBAL TEAM (DGT)</p><p>DGT</p><p>Clients will continue to demand </p><p>more from their vendors</p><p>Vendors would continue to evolve </p><p>their services to fulfill customer needs, and deliver value on both </p><p>qualitative and quantitative terms.</p><p>CREATIVE</p><p>TECHNICAL</p><p>FINANCIAL</p><p>SAY</p><p>DGTGIVES CLIENTSCOMPLETE CONTROL </p><p>KEY ISSUE HOW DGT CAN SOLVE IT</p><p>DELAYS IN SCHEDULE ANDINABILITY TO MEET MILESTONES</p><p>HIDDEN COSTS</p><p>LACK OF APPROPRIATE RESOURCES</p><p>SECURITY ISSUES</p><p>CULTURAL BARRIERS</p><p>COMMUNICATION </p><p>INABILITY OF OUTSOURCINGPROVIDER TO UNDERSTANDCLIENT'S BUSINESS NEEDS</p><p>INFLEXIBLE CONTRACTS</p><p>LACK OF EXIT STRATEGY </p><p>PROVIDES RIGHT INFORMATION AT THE RIGHT TIME, MAKING IT EASY TO FIX CORRECT AND REALISTIC DEADLINES. </p><p>OFFERS TRANSPARENT COST STRUCTURE, ON A COST + MARGIN MODE</p><p>INVOLVES CLIENT IN THE TALENT SELECTION PROCESS</p><p>PROVIDES OVERALL CONTROL; CLIENT CAN SELECT APPROPRIATE PHYSICAL, NETWORK AND VIDEO SECURITY</p><p>CULTURAL TRAINING AND TIMELYFEEDBACK TO COUNTER DISPARITY</p><p>MULTIPLE METHODS TO COMMUNICATE, SUCH AS EMAILS, GO TO MEETING, PIVOTAL TRACKER, TFS, AND SKYPE, ETC. </p><p>DEDICATED TEAM SET UP SPECIFICALLY FOR THE CLIENT'S PURPOSE; FOCUS REMAINS ON THE CLIENTS BUSINESS</p><p>STRAIGHTFORWARD CONTRACTS, WHICH ARE TRANSPARENT AND SCALABLE</p><p>OFFERS OTHER OPTIONS SUCH AS BOT OR JV RELATIONSHIPS IF DGT DOES NOT WORK OUTAS EXPECTED</p><p>48%</p><p>Source: http://brandongaille.com/26-us-outsourcing-statistics-and-trends/</p><p>ADDITIONAL JOBS INFINANCE, IT, AND OTHERKEY BUSINESS SERVICESAREAS WILL BEOFFSHORED BY 2016(HACKETT GROUP)</p><p>VALUE OF OUTSOURCINGIS EXPECTED TOINCREASE TO TOUCH</p><p>IN 2015 </p><p>COMPANIES PLAN TO HIRE MOREOUTSOURCERS THAN FULL OR PART TIMESTAFF IN THE NEXT 12-18 MONTHS</p><p>7,50,000$25 BILLION</p><p>FUTUREOF OUTSOURCING</p><p>OFFSHOREOUTSOURCING TOGROW BYMORE THAN</p><p>ANNUALLY(META GROUP)</p><p>20%</p><p>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&amp;utm_medium=sssite&amp;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</p></li></ul>