Cosmopolitan Magazine Indian Edition

Outsourcing alternatives to an unstable political and economic India

Outsourcing: A love-hate for USIT professionals. Ask the average worker in any IT organization, and hearing about the fear of jobs to India and China is almost inevitable. Although many of them have the step toward Business Service Management (BSM) to start address of the chaotic labor market trends, labor, IT itself still uses more than one third of IT budgets. That number is completely consistent with A recent Gartner report states that 37% of typical IT budget goes directly to the staff. What will you do as a CIO to manage this situation mad? Is outsourcing or "offshoring" is the answer?

How can you outsource your business in a foreign country and still the Compliance with the guidelines of best practice frameworks like ITIL or MOF? How do you maintain Sarbanes-Oxley, PCI, HIPAA, or the use of 100% offshore resources with far less control?

Almost everyone in the IT industry has at least one story about various operational tasks as "offshoring" to India, and not a call center, Network Operations Center (NOC), or infrastructure team is immune from rumors of jobs offshore. No longer are the cities of Mumbai and Delhi, simple production Hubs and suppliers of raw materials. The country is home to some of the biggest corporate call centers and development centers in the world. End of 2005 included the Indian workforce Outsourcing 350,000. This is a total now estimated at well over 800,000, with many new positions go unfilled due to lack of qualified candidates.

Eleven years ago this month, USA Today published an article entitled "Can the political instability in India will be eliminated?" Looking exclusively to the news of the last six months, the answer to this question is an obvious NO.

The trend towards a twenty-first century could not in India has encouraged the kind of profound political change you expect from the world's most populous democracy. The unwillingness of the Indian Government vigorously against intellectual property theft is the stuff that causes lose your legal team to too many nights sleep.

Recession has its Route to India made as well. The fourth December 2008 edition of the New York Times, an article discussed the wave of outsourcing companies scaling back their normal activities in India because of the global financial unhealthy climate. This week, the Indian rupee is at a record low.

India makes a strong case as the "global Back-Office ", but it has failed to produce an environment to support front-office functions such as product innovation and business strategies. The main idea in the last five years, the Indian outsourcing companies are masterful in the art of efficiency measures for the development and product. What is next?

On 7 January 2009, took a nosedive in the wake of announcements Indian stocks Satyam Computer Services, the company earnings summaries for several years was inflated. The announcement by Satyam Chairman and founder, that he falsified accounting documents on an ongoing basis has directly cluttered all of India's outsourcing industry dramatically. As a provider of back-office services for many of the largest banks and healthcare institutions in the world, Satyam is the result of the crisis no less devastating.

From Friday, January 9th 2009 news sources reported that believe the interim CEO Ram Mynampati can not that the company continue beyond the next few weeks. Mynampati said they were working to find the cash pay current employees, suppliers and creditors.

In less than a week, the crisis has crossed the Pacific Ocean and hit U.S. coast. Auditing giant PricewaterhouseCoopers is expected to pay a fraud high price for the emerging. The investigator was responsible for financial oversight for over eight years, Satyam, Satyam and investors are likely to try in court Losses go. According to legal sources from India, are most likely to attack directly instead of PricewaterhouseCoopers Satyam.

The tragic events of November 2008 clearly show in Mumbai that the concerns are much deeper. About 200 people were killed in the attacks, and for the entire Central Business District in Mumbai to a standstill several days, which lost billions in the labor market. Within a week after the attacks, five top Indian Cabinet members were forced to resign. 1 December, TIME magazine asked the question "Will Survive the Government of India Mumbai Massacre?"

Many companies are selecting alternative destinations and some of the trends show an actual migration from India to other knowledge-rich environments such as Singapore, The Philippines, Armenia, Pakistan, and various Latin American countries. Companies, the less interaction with the audience (for example, a Software Development Center) can destinations where English is not the native language or in some cases not at all a language is spoken. Companies are facing public building operations such as help desks or call centers forced to previous to reconsider decisions, and many more English-centric countries such as Taiwan and the Philippines to move.

Key players make a strong argument in itself, since to develop these trends. In the Western Hemisphere, Costa Rica and Peru have wonderful recordings by rock-solid software development and high customer satisfaction Ratings. In Europe, Armenia is emerging as an important force package, and the model of efficiency. In Asia, many are discovering that the near-perfect English spoken in Taiwan and the Philippines, combined with some labor costs equal to or smaller than those in India make any destination of your choice. In fact, 30 Featured November issue of The New York Times Magazine a four-page article promotes the viability of the Philippines as one of the leading outsourcing destination.

While China, Russia and Korea have fantastic talent pools of labor and in some cases, difficulties in dealing with local and national governments, they are less attractive to some U.S. companies.

During one of these lesser more historically colorful European countries, Armenia is a virtual vault of extraordinary Talent. As mentioned by the CIA World Factbook, 18% of Armenia's current population is set below the age of 15, which means the talent pool for major growth.

Armenia's Declared independence from the former Soviet Union on 21 September, 1991, and today a bastion of political stability (a particularly attractive factor for the O & O-industry). A healthy real GDP growth rate of 13.7% making Armenia one of the top producers in the EU.

In addition, is rapidly becoming Armenia, a major challenger in the index of relative economic freedom. Since the reported Heritage Foundation, the change has been really very surprising. In 2000, ranked 84th in Armenia relative economic freedom. From the end of 2008 Armenia ranked 28th – Before European power plants in Spain (31) and France (48th) and just behind Sweden in 27th Place.

Hong Kong ranked # 1 on the list for 2008, with the U.S. # 5

The assessment of economic freedom is on 50 economic indicators in the following categories: Cash Flow based and foreign investment, financial, monetary, budgetary and trade policy, wages and prices, government interference in the economy; Property rights and rules, and black markets.

Many outsourcing experts are looking for a presence in Armenia very successful for many of their customers and partners. The cooperation with the Armenian government service, immigration and visa restrictions for facility managers and other technical Employees for travel between Armenia and the United States has been a great benefit to many, and this is a great satisfaction with the talent pool increasingly offered by this European country.

After a stable presence in Armenia is only one example of alternatives to the current Indian instability. There are many other alternatives as well, and the diversification is the cornerstone of success in the years to be.

How to diversify indicated by a CEO, "… the logical approach for today's global economy. Many of my contacts who have previously invested heavily in the Indian Resources are already asking for new alternatives, and we believe the best approach is to avoid simply, the old cliché of "putting all your eggs in one basket."

Singapore has emerged as another target of choice, with an extremely stable economy and government and strictly enforced laws on the rights of intellectual property. Perfect English is widely spoken, and the country is one of the top innovators in five technical world view.

Originally founded as a British Trading colony in 1818, joined the Malaysian Federation Singapore for a short two years until 1965. Now fully independent, Singapore is undoubtedly one of the wealthiest, diverse and cosmopolitan destinations in the world and has a GDP per capita greater than that of many "leaders" in Western Europe.

In 2006 evaluated the World Bank in Singapore as "the most business-friendly economy in the world". Immediately after London, New York and Tokyo, Singapore's fourth largest Currency trading hub in the world.

The country is home to three major state universities: the National University of Singapore, Nanyang what Technological University and Singapore Management University, in an illiteracy rate of 93%. meets the island state it all with a geographic size, only three times that of Washington, DC.

The Philippines and the United States not only share a very similar legal system, but as the English language well. Companies in the area Justice consider this fact particularly attractive. According to a U.S. colony, the Philippines has a workforce that is already familiar with many legal factors are not easily realized in countries with less experienced a relationship with the United States.

A few facts about the Philippines:

• Population 91 million from 2008
• 550 000 graduates per year on average
• Skilled labor pool of more than 30 mio
• Entry-Level IT Salaries average of $ 2500 – $ 8000 USD PA
• Top-quality CBD real estate costs on average $ 17 PSF
• 95% illiteracy rate
• English as the primary language

One of the top three law firms in the world shifted its entire Network Operations Center from Chicago to Fort Bonifacio, Manila, in 2003. This process has since been much greater development also including legal processes and software.

From 1997 to 2008 Companies such as Citibank, Fluor, IBM, Convergys, Telus, HSBC, Dell, JP Morgan, Siemens and the German Bank have all major offshore facilities in the region, Metro Manila, Philippines opened.

More than just a country filled with call centers, the Philippines is home to dozens of offshore activities from network operations wireless services, energy, transportation and logistics, legal and medical transcription, finance and accounting, and software development.

The country is now recognized by some as the top destination of choice in Southeast Asia. In 2006 the country generated more than U.S. $ 3.0 billion, and outsourced operations, and this Number is expected to more than double by end 2009. The Philippine government has a global market share of 80-10% in targeted O & O market by 2011.

Regardless of where you go, there is no "single best answer" to any situation. When searching for the "Trusted Advisor" to help get you to your next outsourcing, offshoring, development or infrastructure decision, you need a company with the knowledge, process, dedication and good direction to a successful . Make

Only through in-depth knowledge of your core business can help any company, effective O & O commitment. You have a company trying to understand and optimize how the process is not only the IT department, but all other business units as well.

O & O will continue to to win over the next few years, regardless of what happened on the Indian subcontinent. Recent events in India and the surrounding areas are only a small stumbling block on a constantly changing global business model.

The companies recognize that today, three very important factors in the Outsourcing and Offshoring industry emerged:

• O & O can not and must not rely on the "one size fits all" methodology more. Diversification is the key.
• Every situation is different.
• Unless you are willing to invest in learning foreign control and H / R systems, unknown holidays, unique infrastructure, government regulations, and possibly a few foreign languages you need a trusted adviser at your side.

Companies and their investors billions of dollars (and thousands of people spent hours) relocated buildings that have only found in India, trying to separate the technology from the actual business process is not only stupid, it's pointless. Outsourcing and offshoring can provide limitless opportunities, but they need with precision and care are carried out and appropriate distribution. Instead of outright cancellation of the offshoring operations, now is the time for the Diversification.

'There is timing in the whole life of the warrior in his thriving and declining, in his harmony and disharmony. There is also a timing in the way of the merchant, the rise and fall of the capital. All things bring rising and falling timing. You must be able to recognize this .. "

Miyamoto Musashi, 1645

Shop The full PDF version of this article.

About the Author

Jack Lesley is a seasoned, dynamic, and well-educated I.T. professional with decades of experience in the US as well as Asia-Pacific and Australia.

He has particular expertise in the areas of infrastructure, outsourcing, offshoring, ITIL, MOF, SOX, PCI, and HIPAA – as well as how they all interact with I.T.

Jack currently resides in Houston, Texas with his wife Sandra, his son Brint, and two vicious Jack-Russell Terriers

Astoundry
2441 Bartlett Street
Houston, Texas 77098

Deepika Padukone reveals it all!

Cosmopolitan $10.36 New in paper! Cosmopolitan: A Bartender’s Life is a memoir of the bartending life structured as a day in the life at Passerby, the bar owned and run by Toby Cecchini. It is, as well, a rich study of human nature—of the sometimes annoying, sometimes outlandish behavior of the human animal under the influence of alcohol, lust, and the sheer desire to bust loose and party. It’s not a pretty picture, but it’s always compelling through the gimlet-eyed gaze of the author. As his typical day progresses, from the almost pastoral quiet of opening the bar and setting up to the gathering rush of customers dropping in after work to the sheer madness of catering to a crazed crush of funseekers, Toby Cecchini muses over a life spent in the service industry and the fascinating particulars of his chosen profession. Topics touched on include dealing with regulars, both welcome and not; sex and the bartender; cocktail connoisseurs (and drinks he refuses to make); learning the bartending ropes of the Odeon when young and newly arrived in New York; the sheer man-killing pace of keeping those drinks coming at flood tide; and the manifold varieties of weirdness and bad behavior that every bartender has to learn how to manage. Cosmopolitan: A Bartender’s Life is the hip, behind-the-scenes look at the frenzied yet undeniably fun atmosphere of that great establishment—the bar—and Toby Cecchini is, by turns, witty, acute, mordant, and lyrical in dealing with the realities of his job, shedding plenty of light on the hidden corners of what people do when they go out at night. Toby Cecchini is part owner of the bar/gallery Passerby, located in New York’s far west Chelsea neighborhood. He began his bartending career in the mid-eighties at New York’s fabled bar and restaurant Odeon, where he began the Cosmopolitan cocktail revival. Cosmopolitan began as a series of acclaimed diaries in Slate. Cecchini has also written for The New York Times Magazine and the Times’s Style section. He lives in New York City.