Outsourcing Times

Outsourcing Opportunities in Brazil

South American countries, particularly Brazil, are becoming more popular as destinations of Western outsourcing, as well as offshoring activities from Asia and other regions.

From the Business Standard:

"Mercosur countries, particularly Brazil, offer great investment opportunities in sectors like business process outsourcing (BPO), banking and financial services, cement, iron ore and chemicals, according to the Federation of Indian Chambers of Commerce and Industry (Ficci).

"China is already making inroads into Brazil in farming, steel and other manufacturing sectors.

"India and Brazil have complimentary strengths and together they can focus on the third country markets. Read More

Lou Dobbs: Hypocrite on Outsourcing

The following is an editorial by staff writer Boney B.

Ah, Lou Dobbs. He's the obnoxious man whose CNN business program ("Lou Dobbs Tonight") features a segment called "Exporting America" that blasts companies that outsource. His outspoken style is popular, but rather ignorant, as we reported in April.

Meanwhile, Dobbs' popular newsletter highlights companies in which he recommends investing. A recent report shows that 8 of 14 companies he extolled in his newsletter were listed on his CNN Web site as offshore outsourcing offenders! Ignorant politics, for ignorant people.

Outsourcing to India On the Rise Again

American companies are outsourcing to India at an increasing rate, in part because of all the attention that the process has received from negative publicity and public outcry.

From the Australian Financial Review:

"The pace of outsourcing work to India is picking up, in part because the controversy in the United States over the trend has publicised India's low costs and expertise.

"In the high-technology hub of Bangalore, two to three Western companies are opening operations in the city every week, officials at Software Technology Parks of India said.

"'During the last six to nine months, we've received hundreds of millions of dollars of free advertising,' said Vikram Talwar, chief executive officer of Exlservice, a New York company that processes financial claims for US banks and insurance companies in India." Read More

India stays strong at UNCTAD

Express India reports:

"Terming apprehensions on Business Process Outsourcing (BPO) as 'unfounded', India on Friday said that it contributed significantly to global growth and welfare and was a 'win-win situation' for all.

"'When developing countries like India register even a small and miniscule presence in BPO, there is a hue and cry. Such reactions and moves are founded on grossly exaggerated estimates of the employment impact in developed countries', India's permanent representative to the UN in Geneva, Hardeep Puri said in Sao Paulo. "

Outsourcing Tech Jobs to Africa

India and Asia are traditional destinations for firms looking to outsource some of their operations and save money. But Africa may not be far behind these countries in competing for Western business.

From the Daily Times:

"Despite civil wars, malnutrition, and the anguish of the AIDS epidemic, something remarkable is happening in black Africa: the stealthy rise of a high-technology sector.

"The Africans speak English, type at least 50 words a minute on a computer, take data from paper claim forms supplied by US health insurers via satellite in electronic form, put it into new digital forms, and ship them back to the US. So connected are these Africans that their forms can be reviewed — as they fill them in — by an American supervisor 8,000 miles away.

"Ghana is best known for producing cocoa and gold, but today Affiliated Computer Services (ACS), a Texas company that runs the outsourcing operation, is the country’s largest private employer." Read More

IBM Outsourcing More Jobs

IBM is moving even more jobs overseas. The News Sentinel reports:

"IBM Global Services plans to outsource to India more than half the information technology positions it has here, providing systems integration for Lincoln National Corp.

"Workers from India are in Fort Wayne training to write code for system interfaces used by the Philadelphia-based life insurance and financial services company.

"More than 60 jobs will be eliminated; about 50 IBM employees here will continue to provide systems integration for Lincoln."

Dubai Dedicates Zone to Outsourcing Industry

At London's Outsource World Conference, the creation of the Dubai Outsource Zone was announced, marking a first in the industry.

From CPI Live:

"Dubai Outsource Zone will provide a comprehensive infrastructure and environment for outsourcing companies to set up global or regional hubs servicing the worldwide market.

"'Dubai Outsource Zone is both inspired and driven by the vision of His Highness General Sheikh Mohammed Bin Rashid Al Maktoum, the Crown Prince of Dubai and UAE Defence Minister to build Dubai into a global knowledge economy hub,' said Sheikh Maktoum Bin Mohammed Bin Rashid Al Maktoum, Chairman of the Dubai Technology and Media Free Zone.

"DOZ targets companies providing outsourcing services." Read More

Offshoring Tech Jobs

A growing number of Americans are finding their tech jobs are being sent overseas, primarily to India.

From the Holland Sentinel:

"In the months leading up to his layoff, Cotterill was assigned to work alongside programmers from India who are taking over tasks formerly done by Americans, a process his company calls Knowledge Transfer, or KT.

"With the crash of the technology sector and overseas outsourcing, thousands of U.S. jobs are disappearing and salaries are under pressure.

"'It is unprecedented, the turn of fortune that has occurred in the high-tech industry,' said Marcus Courtney, president of the Washington Alliance of Technology Workers in Seattle. Read More

Matsushitu to Shift Jobs to China, Malaysia

Japanese firm Matsushitu, which makes the Panasonic brand, is planning on sending about 2.5 percent of its workforce to China and Malaysia in an effort to reduce costs.

From CNN Money:

"The Nihon Keizai Shimbun said Matsushita, makers of Panasonic branded electronics, plans to offer workers an early retirement package from July aimed at trimming back about 2.5 percent of its 120,000 employees in Japan.

"After two years of losses, Matsushita swung to profit in the past business year ended March 31, helped in part by cost-cutting efforts from a restructuring programme started three years ago that included plant closures and around 13,000 job cuts." Read More

OfficeTiger gets $50M from Francisco Partners

Outsourcing has become a chic area for investors. Crain's reports:

"Manhattan-based OfficeTiger, an outsourcing company, has received a $50 million investment from San Francisco-based venture fund Francisco Partners.

"The investment consists of $25 million in new money and $25 million to take over the equity position of a prior investor."