|
|
| "...20% of InformationWeek 500 companies say
they've taken back offshored work in the past year." |
InformationWeek |
November 2007 |
| "In a 2005
study, McKinsey & Co. estimated that just a quarter of India's computer engineers had
the language proficiency, cultural fit and practical skills to work at multinational
companies. The result is increasing competition for the most skilled Indian computer engineers and a
narrowing U.S.-India gap in their compensation. India's software-and-service association
puts wage inflation in its industry at 10% to 15% a year. Some tech executives say it's
closer to 50%. In the U.S., wage inflation in the software sector is under 3%, according to
Moody's Economy.com." |
The Wall Street Journal |
June 2007 |
"Data from law outfit Addleshaw Goddard has found that 60 percent of companies had changed or renegotiated their IT outsourcing contract while a third had opted to return the running of their IT infrastructures to internal employees." |
iHotDesk |
March 2007 |
| "This research into the potential pitfalls of outsourcing comes just a week after Jean-Marc Lazzari, head of Unisys operations in continental Europe, told us that he knew of up to 10 deals worth between 700m euros ($890m) and 1.5bn euros ($1.9bn) that were already back on the market despite having been signed less than two years ago. "These deals were based on the your mess for less principle, said Lazzari, and they are in danger as the supplier often did not get the volume of work expected from the client,
and the client didnt get the expected cost savings." |
Yahoo News - UK & Ireland |
September
2006 |
| "Global
revenues on outsourced
medical transcription
services in 2005 is
already estimated
to be at 2.2
billion dollars,
with the US
market accounting
for more than 85 percent
of global demand..." |
XMG
Study |
January
2006 |
|
"The Indian software
and services export
is estimated at Rs
78,230 crore ($17.2
billion) in 2004-05,
as compared to Rs
58,240 crore ($12.8
billion) in 2003-04,
an increase of 34
percent." |
Nasscom-McKinsey |
November
2005 |
|
"On average,
applications for
H-1B workers in
computer occupations
were for wages
$13,000 less than
Americans in the
same occupation and
state.” |
Programmers
Guild Report |
|
| "...offshore
outsourcing will create
more than 337,000
jobs by 2010..." |
InformationWeek |
November
2005 |
| "Demand
for offshore IT services
isn't slowing, and
that trend is showing
up in Indian companies'
hiring. Between July
and September, Tata
Consultancy Services
increased its staff
by nearly 12% to more
than 53,000,
while Infosys Technologies'
staff grew 15% to
more than 46,000."
|
InformationWeek |
October
2005 |
| "Outsourced
IT services brought
in $12
billion for India
2004, leading
the world in IT exports."
|
Santa
Clara University's
Leavey School of Business |
October
2005 |
| "Only
19% of US businesses
have an offshore outsourcing
strategy, a
study by Ventoro found.
However, the percentage
skyrockets to 95%
if only Fortune 1000
companies are
considered."
|
ZDNet
Research |
October
2005 |
| "The
US IT offshoring market
will record a compounded
annual growth rate
of 14.4%
and will nearly double
to $14.7 billion by
2009..." |
IDC |
September
2005 |
| "U.S.
financial
service providers
(FSPs) are expected
to spend $65.7 million
on IT services in
2005, however
less than 30 percent
of FSPs will outsource
any strategic projects
by the end of 2006." |
Gartner |
August
2005 |
| "Business
Process Outsourcing
will overshadow and
incorporate IT outsourcing
and mainstream BPO
expenditure is likely
to grow worldwide
by 10
per cent a year from
$140 billion in 2005
to over $220 billion
by 2010." |
LogicaCMG |
August
2005 |
| "...the
average size of contracts
announced by IT and
BPO services vendors
in the second quarter
of '05 fell to $56m
compared to $106m
in the year ago period.
This means that
average deal size
has now declined for
four consecutive quarters."
|
Datamonitor |
July
2005 |
| "In
2003, Ireland and
India were the main
beneficiaries of offshoring
and the largest exporters
of IT services, reaching
14.4 billion dollars
and 11.3 billion dollars
respectively..." |
International
Monetary Fund |
July
2005 |
| "Citing
various studies, the
WTO noted that the
global turnover from
offshore
IT services reached
45 billion dollars
in 2003, or
less than 10 per cent
of total world business
service exports."
|
News
From Bangladesh |
July
2005 |
| "The
research firm Gartner
Inc. predicts that
up to 15 percent of
tech workers will
drop out of the profession
by 2010, not including
those who retire or
die." |
ABC
News |
June
2005 |
| "...the
number of buyers prematurely
terminating an outsourcing
relationship has doubled
to 51 percent
while the number of
buyers satisfied with
their offshoring providers
has plummeted from
79 percent to 62 percent."
|
DiamondCluster |
June
2005 |
| "...entry-level
programmers and help-desk
workers in Vietnam
earn an average, annual
salary of about $3,000
per year. By
contrast, India's
IT graduates are paid
about $5,400 -- not
a lot, but almost
twice as much as the
Vietnamese. |
neoIT |
June
2005 |
| "India
controls 44 percent
of the global offshore
outsourcing market
for software and back-office
services, with revenues
of US$17.2 billion
(euro14.07 billion)
in the year ended
March 2005..." |
Associated
Press |
June
2005 |
| "Nearly
three-quarters
of international outsourcing
companies in
10 countries expect
to grow revenues within
the next 12 months
by an average of 11%." |
ComputerWeekly |
May
2005 |
| "...financial
services firms in
the U.S. spent about
$590
million on offshore
services from
third-party outsourcers
last year, while their
European counterparts
spent about $480 million
overseas." |
ComputerWorld |
May
2005 |
| "To
get high-quality service
levels from top-tier
vendors, customers
should expect to pay
in the $24 to $30
per hour range for
offshore labor..." |
Forrester
Research |
May
2005 |
| "Twelve
percent of outsourcing
spending in 2005 will
involve offshore resources,
growing to 19 percent
in 2009." |
Saugatuck
Technology |
May
2005 |
| "The
ranking of 12 most
valuable companies
published in April
2005 issue of Global
Outsourcing has IBM
at the top, quite
predictably, with
a valuation of more
than $140 billion.
ADP takes the number
2 slot with market
capitalisation of
$26 billion, ahead
of Accenture ($23
billion), a company
with almost double
of ADP's revenue.
The
next two positions
are taken by Infosys
and Wipro with a market
capitalisations of
$19.9 billion and
$14.6 billion, respectively,"
a release said here."
|
Global
Outsourcing |
May
2005 |
| "Transiting
from a major business
process outsourcing
(BPO) hub,
India is set to emerge
as a $17 billion knowledge
outsourcing destination
by 2010, states
a new industry study." |
Confederation
of Indian Industry
(CII) |
May
2005 |
| "The
survey of 25 large
organizations with
a combined $50 billion
in outsourcing contracts
found that 70%
have had negative
experiences with outsourcing
projects and
are now taking a more
cautious approach.
One
in four companies
has brought outsourced
functions back in-house
and nearly half have
failed to see the
cost savings they
anticipated as a result
of outsourcing." |
Deloitte
Consulting |
April
2005 |
| "Indian
software exports exceeded
$17bn last year, representing
a $4bn jump over 2003." |
Sand
Hill Group |
April
2005 |
| "By
2009 the information
technology and enterprise
solutions (ITES) market
in
India alone is likely
to reach $142 billion.
This estimate contrasts
with the current price
tag of $532 billion
to provide these services
in the United States."
|
McKinsey
Study |
March
2005 |
| "According
to the National Association
of Software and Service
Companies (Nasscom),
the
total market size
of knowledge process
outsourcing business
in India may rise
to a staggering $15.5
billion, up from $1.2
billion now." |
Indo-Asian
News Service |
March
2005 |
| "...60
per cent of
organizations that
outsource parts of
the customer-facing
process will
encounter customer
defections and hidden
costs that
outweigh any potential
savings they derive
from outsourcing..." |
Gartner |
March
2005 |
| "Gartner
also predicted that
through 2007, 80
per cent of organizations
that outsource
customer service and
support contact centres
with the primary goal
of reducing cost will
fail." |
Gartner |
March
2005 |
| "Three-quarters
of U.S. companies
outsourced
some or all of their
information technology
activities in 2004,
and that percentage
is likely to increase
this year..." |
Global
Outsourcing Report
2005 |
March
2005 |
| "Industry
experts predict that
by
2015, offshoring by
the US companies would
represent $135 billion
in wages and
3.3
million professional
jobs. And new
countries like Czech
Republic, Poland,
Hungary and Mexico
are likely to become
new offshoring destinations
this year." |
Hewitt
Study |
March
2005 |
| "...estimates
that in 2005
as many as 40 percent
of global sourcing
projects may fail
to achieve desired
results." |
neoIT
Study |
January
2005 |
| "Over
40 percent of offshore
initiatives will not
yield anticipated
savings, scale or
risk diversification...'
NeoIT said in its
predictions for 2005.
The key reason for
these disappointments
will not be due to
supplier capability
but buyer preparation
and management." |
CNET
News.com |
January
2005 |
| "By
2005, Deloitte & Touche
expects the top 100
global financial-services
firms to offshore
more than $200 billion
of their operating
costs and save more
than $700 million.
Shahrawat notes that
the three largest
Indian outsourcers
will each surpass
$1 billion in sales
in 2004. " |
Wall
Street and Technology |
December
2004 |
| "Spending
on the top 100 outsourcing
deals worldwide increased
from $48.3 billion
in 2002 to $66.1 billion
in 2003 and,
for the first time,
Europe
surpassed the Americas,
capturing more than
half of the top 100
deals and accounting
for more than half
the value of these
deals."
|
IDC
|
December
2004 |
| "Offshore
outsourcing is expected
to grow nearly 20
percent annually through
2008, with
the average enterprise
sending 60 percent
of its application
work to low-wage countries
by 2009, a market
research firm said
Tuesday." |
TechWeb |
November
2004 |
| "Almost
half of business and
IT professionals believe
the 2004 U.S. Presidential
election will impact
the number of U.S.
companies using offshore
outsourcing,
according to a recent
survey conducted by
META Group. The survey
found that almost
50
percent of
respondents believe
that offshore outsourcing
will increase if George
W. Bush is elected,
and that it will
decrease if John Kerry
is elected."
|
META
Group |
November
2004 |
| "Even
though the term "outsourcing"
has become synonymous
with the practice
of sending jobs overseas,
the bulk of outsourcing
activities—70.2
percent—occur on the
domestic front..." |
2004
Enterprise Systems
Outsourcing Survey
|
October
2004 |
| "...a
University of California-Berkeley
study that warns as
many as 14
million Americans
hold jobs at risk
of being outsourced."
|
Mercury
News |
October
2004 |
| "...the
worldwide market for
offshore IT services
will grow from nearly
$7 billion in revenues
in 2003 to $17
billion by 2008,
achieving a five-year
compound annual growth
rate (CAGR) of nearly
20%." |
IDC
|
October
2004 |
| "Several
offshore outsourcing
vendors now exceed
$1 billion in annual
revenue, and
the total market is
greater than $10 billion."
|
META
Group |
October
2004 |
| "...the
average enterprise
will ultimately outsource
60% of application
work offshore
(circa 2008/09)." |
META
Group |
October
2004 |
| "The
offshore outsourcing
market will continue
to grow
nearly 20% annually
through 2008..." |
META
Group |
October
2004 |
| "AMR
Research released
a study today announcing
that manufacturers
plan to increase outsource
spending 9.3 percent
in 2005 in
an effort to contain
internal IT costs." |
AMR
Research |
October
2004 |
| "Despite
these limitations,
the report showed
that
in 2002 the US imported
37.5 billion US dollars
worth of business,
professional and technical
(BPT) services, which
is a
76.8 percent increase
since 1997." |
INQ7.net
referencing GAO Study |
October
2004 |
| "Major
IT services companies
worldwide
currently employ 14%
of their combined
workforce in India,
as they tap into the
country's low-cost
IT and back-office
skills base. Research
from ComputerWire
found that the top
50 IT services companies
currently employ
a total of 1.25 million
employees worldwide,
with 173,000 of this
total based in India."
|
Computer
Business Review Online |
September
2004 |
| "The
U.S. information technology
sector lost 403,300
jobs between March
2001 and this past
April..." |
Associated
Press |
September
2004 |
| "American
employers will hire
270,000 fewer IT workers
this year than
they did in 2003,
according to a poll
of 500 hiring managers
by the Information
Technology Association
of America, providing
fresh evidence that
the IT-labor market
continues to weaken."
|
InformationWeek |
September
2004 |
| "General
Electric's '70-70-70'
plan signals the possible
extent of these shifts:
It plans to outsource
70 percent
of its head count,
push 70 percent
of that outsourcing
offshore and locate
70 percent
of its workers in
India." |
Newsweek |
August
2004 |
| "The
number of Indian
professionals in the
IT sector is expected
to triple to
more
than 2 million over
the next five years,
and Morgan Stanley's
Mumbai research center
predicts that multinationals
will match new jobs
in Indian subsidiaries
with head-count reductions
elsewhere." |
Newsweek |
August
2004 |
| In
the first 32 months
of a typical U.S.
recovery, wages rose
10 percent; this time,
wages have risen just
2 percent." |
Newsweek |
August
2004 |
| "
In the U.S. recession
that ended in June
2001,
half the job cuts
were 'structural,'
meaning permanently
eliminated, compared
to an average of 25
percent in previous
recessions,
according to the U.S.
Federal Reserve. In
other words, laid-off
workers are much less
likely to be rehired
by their old companies
and have to find new
jobs or turn to self-employment.
Data from the U.S.
Bureau of Labor Statistics
show that more
than half of the jobs
created since the
end of the recession
are part time,
that
tenured workers are
still losing their
jobs at record rates
and those that find
new ones are taking
57 percent pay cuts
on average. |
Newsweek |
August
2004 |
| “The
topic of offshore
outsourcing enlisted
the strongest responses,
said W. Ladd Bodem,
Principal, ServiceXRG.
24%
of customers indicated
that they will stop
doing business with
a vendor if they outsource
support offshore,
regardless of the
quality of support.
It is not clear that
they would actually
stop doing business
with a vendor, but
it is clear that this
is an emotional issue
and one that must
be factored into any
outsourcing strategy.”
|
Service
Excellence Research
Group, LLC |
August
2004 |
| "The
brouhaha over the
loss of service jobs,
which currently account
for over
80 percent of private-sector
employment
in the United States,
is not merely an American
phenomenon. Service
jobs are at risk in
all developed countries.
In the U.K., where
some claim that as
many as 50,000
jobs moved offshore
in 2003, the
issue is just as prevalent
and just as contentious.
Countries like Germany
and Sweden are feeling
political tremors
as well." |
Harvard
Business School |
August
2004 |
| "About
21% of IT executives
surveyed recently
by management consulting
firm DiamondCluster
International said
they had
prematurely terminated
offshore arrangements
in the prior 12 months.
The most common reasons
cited: the provider
had financial difficulties;
the
provider failed to
deliver on commitments;
or the buyer consolidated
its outsourcing vendors." |
Network
World |
July
2004 |
| "In
India, they were pumping
these guys out left
and right. . . . Look
at the deal here:
We've got very highly
paid SAP programmers
that we could hire
in the U.S. - and
they're hard to find.
Or we
could go to India
and find very talented
SAP programmers immediately
at 35% to 40% lower
cost." |
Network
World |
July
2004 |
| "The
research showed that
80
percent of organizations
have suffered problems
ranging from time
and cost overruns,
to non-adherence to
specifications and
requirements,
when outsourcing ADM
projects." |
Meta
Group |
July
2004 |
| "The
number of software
and IT service jobs
in India will increase
by 1.5 million to
2 million by 2008,
according to a report.
This represents a
40% compound annual
growth rate." |
The
Times of Inda |
July
2004 |
| "New
research shows that
80
percent of businesses
have spent more time
and money on outsourced
application development
that was originally
specified..." |
Meta
Group |
June
2004 |
| "Responding
to survey on a prominent
election-year issue,
66 percent of U.S.
workers believe that
offshore outsourcing
of jobs is harmful
for the economy."
|
Hudson
Global Resources |
June
2004 |
| "58%
of American workers
believe that companies
outsourcing work that
could be done by Americans
to offshore
contractors should
be penalized
by the US government..." |
ELA
Survey |
June
2004 |
| "6%
of those surveyed
said they have
lost a job because
their work was sent
overseas --
30%
know of someone,
including a family
member, friend or
co-worker who had
lost a job due to
offshoring. -- 8%
said they personally
feel
their job security
is at risk
because their employer
might send their work
overseas |
ELA
Survey |
June
2004 |
|
"Forrester also
increases its near-term
estimate of lost jobs
by 240,000 in its
new report, projecting
that a cumulative
total of 830,000 positions
will have moved offshore
by 2005." |
Forrester
Research |
May
2004 |
| "Forrester
has increased
its estimate of how
many US services jobs
will go offshore in
the near term.
Long term, we believe
that our previous
projection of 3.3
million by 2015 is
still accurate."
|
Forrester
Research |
May
2004 |
| "...an
employee
could be paid as much
as $50,000 to share
a firm's data
with a competitor." |
Wall
Street & Technology |
May
2004 |
| "TowerGroup
estimates that the
top 15 global financial
institutions
will
increase information
technology spending
on vendor-direct offshore
outsourcing by 34%
annually –
representing an increase
from $1.6 billion
in 2004 to $3.89 billion
in 2008." |
CRM
Today |
April
2004 |
| "...40%
of the Fortune 500
expected to have [outsourced
offshore] by
the end of this year,
according to the research
firm Gartner Inc.... |
Fast
Company |
April
2004 |
| "American
high-tech firms shed
560,000 jobs
between 2001 and 2003,
and expect
to lose another 234,000
in 2004." |
IEEE-USA |
March
2004 |
| "Offshore
business process outsourcing
services -
which, unlike application
development, typically
require the transfer
of personal data -
grew
38% last year to just
under $2 billion..." |
Gartner |
March
2004 |
| "While
the U.S.
lost 234,000 IT jobs
in 2003, for
Indian techies 152,000
new jobs were created."
|
The
Economic Times |
March
2004 |
| "About
14 million jobs,
or 11% of the US total,
have been identified
as at
risk of being sent
abroad." |
McKinsey
& Co. |
February
2004 |
| "...the
Department of Labor
estimates (the North
American Free Trade
Agreement or NAFTA)
was responsible for
the loss of more than
500,000 U.S. jobs
between 1994 and 2002." |
Time
Magazine |
February
2004 |
| "In
the past 3 years,
offshore
programming jobs
have nearly tripled,
from 27,000 to an
estimated 80,000." |
Forrester
Research |
February
2004 |
| "More
than 2.2 million jobs
have been lost since
Bush took office
and the unusually
tepid recovery in
the labor market has
fueled public concern
over offshore "outsourcing"
to low-wage countries
like China." |
Reuters |
February
2004 |
| "Some
200,000
to 300,000 jobs could
end up being shipped
offshore this
year..." |
eCommerce
Times |
February
2004 |
| "Nonmilitary
government clients
were the biggest outsourcing
customers last year,
with $18.5
billion in contracts.
The defense
sector finished
a close second at
$18.2
billion." |
IBD |
February
2004 |
