BPO and Offshoring: is it still good value?
The global outsourcing sector is seeing a drift towards multi-service contracts where providers are delivering integrated services. Capgemini is referenced as an pioneering example of a provider that sources skills from a range of global locations in what it calls its Rightshore® model.
7 February 2008
Publication
Over the past ten years, the Indian sub-continent as provided stern competition to Western Europe in the outsourcing marketplace. With the ability to offer low-cost, low-end IT business process and mass-scale software development services, the Indian outsourcing industry has thrived.
Valued at $47.8 billion for the 2006-07 fiscal year, the Indian outsourcing sector has enjoyed spectacular success.
However respondents to Information Age’s Effective IT Survey 2008, are under whelmed by the strategy employed by the Indian outsourcing sector with highly commoditised, low-end business processes to far-off and unfamiliar locations.
Clients are now asking for a more strategic relationship with providers who can provide integrated services.
The article comments that “in order to underpin this drift towards multi-service contracts, many providers are increasingly building out global delivery models, in which services are delivered via an optimised structure that sources skills from a range of global locations. European outsourcing provider Capgemini, is already pioneering this approach in its so-called Rightshore® model: the company leverages a range of locations - offshore, nearshore and onshore - to provide a better spectrum of services to its strategic partnership programmes.”
To read the rest of the article at Information Age, click here.
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