Why Outsourcing to Vietnam is a Sound Business Decision?
By admin | March 19, 2010
TuVinhSoft .,JSC asked:
1. Overview
This document lays out the business case for meeting your company’s software development needs by outsourcing to Vietnam. It first outlines factors to consider in deciding which offshore locations to outsource to. Then it considers those factors one at a time for Vietnam, concluding that the country is a promising offshore location for outsourced software development and for business’ other IT needs.
2. Factors to Consider Regarding the Offshore Provider’s Location
In this section, we present a simple and straightforward framework for understanding the advantages and disadvantages of various offshore locations for your outsourced projects and business functions. This list of factors focuses on the most important and relevant factors, without becoming overly complex by listing unimportant minutiae.
The main factors that should be considered are as follows:
Price: Obviously one of the main resources to outsource work is to save money, so naturally you will be interested in the price quoted by the offshore provider. But it is critical to know exactly what that price includes. Costs for labor and overhead are both important components of the total price. Before doing direct comparisons of offshore providers’ labor costs, you should consider how much overhead you will incur in managing the outsourced work.
Labor Force: Who exactly will be working on your project? You should be familiar with these workers’ professional experience, education, and technical expertise. Also, make sure that there are enough workers available to work on your projects, so that your work won’t be slowed by labor bottlenecks. Find out what kind of turnover rate the offshore provider has, because if the turnover rate is high, a lot of time will be wasted on re-training and transferring information to new offshore employees.
Socio-Economic Stability: You can greatly reduce the risk of outsourcing by choosing to work with an offshore provider that is located in a country that has high economic, ethnic/religious, and political stability. If the offshore provider is located in a country with significant instability and conflict, your project may proceed more slowly or come to a complete halt. Also, the unstable situation may present dangers if and when your employees have to travel to the offshore site (Americans are often a target of insurgents overseas). And ultimately, if the country unexpectedly ends up with new leadership, you may find that the business-friendly policies that originally attracted you to the country suddenly change and become hostile to foreign investment.
Economic Stability: Be familiar with the country’s GDP and other economic indicators, and how those indicators have changed over the past several years. Also, consider whether foreign investment is increasing or decreasing and try to understand the underlying factors. What international trade treaties and pacts is the country a part of?
Ethnic/Religious Stability: Know what ethnic and religious groups are present in the country and whether they are tolerant or intolerant of one another. Does the country have a history of ethnic unrest and/or religious conflict?
Political Stability: Understand the local political situation where the offshore provider is located. What kind of government does the country have, and how long has the current regime held power? Does the country have a history of upheaval and uprisings? Know whether rebellions, revolutions, and coups are common. Also consider the stability of neighboring countries and whether they have friendly relations with the country where the offshore provider is located. Read expert analyses of any regional conflicts.
Business Environment: When you outsource IT-related work, you’ll probably be exchanging proprietary information and dealing with intellectual property. You need to know what policies the country has in place to protect your company’s trade secretes and intellectual property rights. Likewise, does the country have appropriate laws regarding economic development, taxes, and the labor force? How well are those laws enforced? All of these issues are very important in fostering a favorable business environment.
Language: You must be able to communicate with the offshore service provider – not only with the top managers, but also with the workers who are involved with your project on a daily basis. How well do they speak and write in English?
Strategic Fit: Many companies ignore questions of strategic fit – much to their chagrin. If the offshore provider doesn’t understand and adapt to your company’s strategic goals and standard business processes, the final deliverable will not be what you are looking for. Have an open discussion with the offshore providers’ managers and try to understand why they’re in business and how your project will be a good fit with their strategic goals.
3. The Benefits of Outsourcing to Vietnam
As stated in the introduction, this section will evaluate Vietnam as an outsourcing destination against each of the factors listed in the preceding section.
Price: In Vietnam, labor costs are 90% less than those in the U.S., which means significant cost savings for your company. Even compared to other outsourcing destinations, Vietnam’s labor costs are attractive. According to an article in “GlobalServices” in August of 2006, Vietnam’s labor cost for outsourcing IT functions and business processes are 30% less than those in India, and also less than those of countries in Eastern Europe. In October of 2006, GlobalServices named Vietnam’s Ho Chi Minh City among the top 50 outsourcing cities in the world, due to its having “one of the lowest production costs,” among other reasons.
Labor Force: The government of Vietnam recognizes and promotes the importance of education and training. According to Vietnam Economic Times, there were more than 200 institutions of higher learning in the country in 2004, and that number had increased by 60% in the preceding six-year period. Today the country has a 96% literacy rate and 80% of the country’s college graduates hold degrees in the sciences (Vietnam Economic Times). This makes Vietnam an exceptional country for outsourcing technological projects, because the highly educated population has a high level of scientific and technical literacy. The labor force also have much lower turnover and much higher stability than do those of most other countries that are active in outsourcing. Overall, companies in Vietnam has an IT-related turnover rate of less than 5%, whereas in many other countries, such as India, this turnover rate can be 10% or even higher. The aforementioned 2006 GlobalServices article cited Ho Chi Minh’s “significantly low attrition rate” and “strong labor pool” as two other reasons for the city’s inclusion in its list of the top 50 outsourcing cities.
Socio-Economic Stability: Common outsourcing destinations in Asia-Pacific are often plagued by instability. Consider, for example, the 2006 coup in Thailand, the Kashmir conflicts between Pakistan and India, and the Sri Lankan military’s struggles against the Liberation tigers of Tamil Elam. There are many U.S. travel advisories that warn Americans against traveling to these areas, but fortunately Vietnam doesn’t share these countries’ woes. In fact, Vietnam is a very stable country, which creates a hospitable business environment for outsourcing.
Economic Stability: Vietnam’s economy is healthy and growing rapidly, with a GDP that, according to CEIC, grew an average of 7.4% in the six years leading up to 2005. This is the second fastest GDP growth in all of Asia, as published in the New York Times article, Vietnam’s Roaring Economy Is Set for World Stage, on October 25, 2006. FDI (foreign direct investment) was almost US$5 billion in 2005, which makes a favorable comparison with that of other countries that are popular destinations for outsourcing work.
Ethnic/Religious Stability: Because 95% of Vietnam’s population is ethnically Vietnamese and more than 80% of the citizens do not identify themselves with any particular religion, Vietnam is largely free of ethnic/religious conflict. A 2003 UNDP (United Nations Development Programme) study concluded that Vietnam had one of the most secure environments for investment, given the conflicts in Iraq and the surrounding region. Likewise, Vietnam was ranked as the safest among the 14 countries in the Asia-Pacific Region by the Political and Economic Risk Consultancy in Hong Kong (Berth of a Nation in Time, autumn 2002).
Political Stability: The current government has held power since Vietnam’s 1975 reunification, meaning that there have been more than 30 years of political stability in the country. The last major conflict with a neighboring country was almost 30 years ago, in 1978. Two American presidents (Bill Clinton during his presidency and in 2006, and George W. Bush during the APEC summit) have visited the country, and Bush met with several top officials including the president, prime minister, and Communist Party chief, thereby underscoring the country’s political stability.
Business Environment: Vietnam has had a free market since its centrally-planned economy was reformed through “doi moi” twenty years ago. Today, Vietnams’ policies create a warm and welcoming business environment for foreign investment. The country became the World Trade Organization’s 150th member in November of 2006, thanks to a vote of the organization’s General Council. At that time, Pascal Lamy, the Director-General of the WTO said, “Viet Nam has shown how anchoring domestic reforms in the WTO can yield dramatic results. Viet Nam’s economic growth topped 8% last year, foreign direct investment rose steeply to over $6 billion, and exports surged by over 20%. More must surely follow with the new laws, administrative measures, and commitments on goods and services that are in Viet Nam’s membership package.” Vietnam is also taking great strides in protecting intellectual property rights and since 2002 has largely been complying with the guidelines established in the WTO Trade-Related Aspects of Intellectual Property (TRIP). When Vietnam became a WTO member, it agreed to comply with TRIP immediately, without a transitional period. The country is expected to achieve full TRIP compliance soon, thanks to legislation that was passed in 2006. This legislation prompted the U.S. to laud the country for its “extensive revisions and updating of its intellectual property laws.”
Language: Unlike many Asian languages, Vietnamese uses the Latin alphabet, just as English does, which makes it relatively easy for Vietnamese speakers to learn English. English is the second most popular language in the country, and the majority of Vietnams’ college graduates have high proficiency in English. Consequently, most IT workers in Vietnam are able to communicate easily with U.S. companies in English when completing outsourcing projects.
4. Who outsources to Vietnam?
Many Japanese companies are choosing to outsource much of their IT work to Vietnam. According to a November 2006 article in GlobalServices, “Vietnam: Capitalizing on the China-Japan,” by the year 2010 as much as 10% of Japan’s software outsourcing may be sent to Vietnam.
Intel is also heavily reliant on Vietnam to meet its outsourcing needs. In October of 2006, Intel Capital, the unit involved in venture capital for the Intel Corporation, announced a $3.5 million investment in FPT, Vietnam’s largest software company, located in Hanoi. Earlier in that same year, the company said that it was going to build a factory for chip assembly and testing with a price tag of $300 million (San Jose Mercury News, “Intel Invests in Vietnam Software Company, October 24, 2006).
Other companies that have chosen to outsource to Vietnam include Nortel Networks, Bayer, Sony, Cisco, and Anheuser Bush (source: CIO.com, “Outsourcing to Vietnam”).
5. Vietnam Is an Excellent Outsourcing Destination
For all the reasons described above, Vietnam is clearly an excellent choice for meeting any business’ outsourcing needs. Here is a quantitative summary of the advantages of working with offshore providers located in Vietnam.
Price: Vietnam’s labor costs are significantly lower than those of many other companies
Labor Force: Vietnam’s labor force has a 96% literacy rate and high scientific and technological knowledge.
Socio-Economic Stability
Economic Stability: Vietnam has very high GDP growth, with significant foreign investment and membership in the World Trade Organization.
Ethnic/Religious Stability: There are no ethnic/religious conflicts in Vietnam.
Political Stability: Vietnam’s current government has been in place for more than 30 years and there have been no conflicts with neighboring countries for almost the same amount of time.
Business Environment: Vietnam’s laws and public policies favor business and foreign investment and the country is constantly strengthening its protection and enforcement of intellectual property rights.
Language: Most college graduates in Vietnam are fluent in English, which is the second-most popular language in the country, in large part thanks to Vietnamese’s use of the Latin alphabet.
Plumbing Tips For Homeowners
1. Overview
This document lays out the business case for meeting your company’s software development needs by outsourcing to Vietnam. It first outlines factors to consider in deciding which offshore locations to outsource to. Then it considers those factors one at a time for Vietnam, concluding that the country is a promising offshore location for outsourced software development and for business’ other IT needs.
2. Factors to Consider Regarding the Offshore Provider’s Location
In this section, we present a simple and straightforward framework for understanding the advantages and disadvantages of various offshore locations for your outsourced projects and business functions. This list of factors focuses on the most important and relevant factors, without becoming overly complex by listing unimportant minutiae.
The main factors that should be considered are as follows:
Price: Obviously one of the main resources to outsource work is to save money, so naturally you will be interested in the price quoted by the offshore provider. But it is critical to know exactly what that price includes. Costs for labor and overhead are both important components of the total price. Before doing direct comparisons of offshore providers’ labor costs, you should consider how much overhead you will incur in managing the outsourced work.
Labor Force: Who exactly will be working on your project? You should be familiar with these workers’ professional experience, education, and technical expertise. Also, make sure that there are enough workers available to work on your projects, so that your work won’t be slowed by labor bottlenecks. Find out what kind of turnover rate the offshore provider has, because if the turnover rate is high, a lot of time will be wasted on re-training and transferring information to new offshore employees.
Socio-Economic Stability: You can greatly reduce the risk of outsourcing by choosing to work with an offshore provider that is located in a country that has high economic, ethnic/religious, and political stability. If the offshore provider is located in a country with significant instability and conflict, your project may proceed more slowly or come to a complete halt. Also, the unstable situation may present dangers if and when your employees have to travel to the offshore site (Americans are often a target of insurgents overseas). And ultimately, if the country unexpectedly ends up with new leadership, you may find that the business-friendly policies that originally attracted you to the country suddenly change and become hostile to foreign investment.
Economic Stability: Be familiar with the country’s GDP and other economic indicators, and how those indicators have changed over the past several years. Also, consider whether foreign investment is increasing or decreasing and try to understand the underlying factors. What international trade treaties and pacts is the country a part of?
Ethnic/Religious Stability: Know what ethnic and religious groups are present in the country and whether they are tolerant or intolerant of one another. Does the country have a history of ethnic unrest and/or religious conflict?
Political Stability: Understand the local political situation where the offshore provider is located. What kind of government does the country have, and how long has the current regime held power? Does the country have a history of upheaval and uprisings? Know whether rebellions, revolutions, and coups are common. Also consider the stability of neighboring countries and whether they have friendly relations with the country where the offshore provider is located. Read expert analyses of any regional conflicts.
Business Environment: When you outsource IT-related work, you’ll probably be exchanging proprietary information and dealing with intellectual property. You need to know what policies the country has in place to protect your company’s trade secretes and intellectual property rights. Likewise, does the country have appropriate laws regarding economic development, taxes, and the labor force? How well are those laws enforced? All of these issues are very important in fostering a favorable business environment.
Language: You must be able to communicate with the offshore service provider – not only with the top managers, but also with the workers who are involved with your project on a daily basis. How well do they speak and write in English?
Strategic Fit: Many companies ignore questions of strategic fit – much to their chagrin. If the offshore provider doesn’t understand and adapt to your company’s strategic goals and standard business processes, the final deliverable will not be what you are looking for. Have an open discussion with the offshore providers’ managers and try to understand why they’re in business and how your project will be a good fit with their strategic goals.
3. The Benefits of Outsourcing to Vietnam
As stated in the introduction, this section will evaluate Vietnam as an outsourcing destination against each of the factors listed in the preceding section.
Price: In Vietnam, labor costs are 90% less than those in the U.S., which means significant cost savings for your company. Even compared to other outsourcing destinations, Vietnam’s labor costs are attractive. According to an article in “GlobalServices” in August of 2006, Vietnam’s labor cost for outsourcing IT functions and business processes are 30% less than those in India, and also less than those of countries in Eastern Europe. In October of 2006, GlobalServices named Vietnam’s Ho Chi Minh City among the top 50 outsourcing cities in the world, due to its having “one of the lowest production costs,” among other reasons.
Labor Force: The government of Vietnam recognizes and promotes the importance of education and training. According to Vietnam Economic Times, there were more than 200 institutions of higher learning in the country in 2004, and that number had increased by 60% in the preceding six-year period. Today the country has a 96% literacy rate and 80% of the country’s college graduates hold degrees in the sciences (Vietnam Economic Times). This makes Vietnam an exceptional country for outsourcing technological projects, because the highly educated population has a high level of scientific and technical literacy. The labor force also have much lower turnover and much higher stability than do those of most other countries that are active in outsourcing. Overall, companies in Vietnam has an IT-related turnover rate of less than 5%, whereas in many other countries, such as India, this turnover rate can be 10% or even higher. The aforementioned 2006 GlobalServices article cited Ho Chi Minh’s “significantly low attrition rate” and “strong labor pool” as two other reasons for the city’s inclusion in its list of the top 50 outsourcing cities.
Socio-Economic Stability: Common outsourcing destinations in Asia-Pacific are often plagued by instability. Consider, for example, the 2006 coup in Thailand, the Kashmir conflicts between Pakistan and India, and the Sri Lankan military’s struggles against the Liberation tigers of Tamil Elam. There are many U.S. travel advisories that warn Americans against traveling to these areas, but fortunately Vietnam doesn’t share these countries’ woes. In fact, Vietnam is a very stable country, which creates a hospitable business environment for outsourcing.
Economic Stability: Vietnam’s economy is healthy and growing rapidly, with a GDP that, according to CEIC, grew an average of 7.4% in the six years leading up to 2005. This is the second fastest GDP growth in all of Asia, as published in the New York Times article, Vietnam’s Roaring Economy Is Set for World Stage, on October 25, 2006. FDI (foreign direct investment) was almost US$5 billion in 2005, which makes a favorable comparison with that of other countries that are popular destinations for outsourcing work.
Ethnic/Religious Stability: Because 95% of Vietnam’s population is ethnically Vietnamese and more than 80% of the citizens do not identify themselves with any particular religion, Vietnam is largely free of ethnic/religious conflict. A 2003 UNDP (United Nations Development Programme) study concluded that Vietnam had one of the most secure environments for investment, given the conflicts in Iraq and the surrounding region. Likewise, Vietnam was ranked as the safest among the 14 countries in the Asia-Pacific Region by the Political and Economic Risk Consultancy in Hong Kong (Berth of a Nation in Time, autumn 2002).
Political Stability: The current government has held power since Vietnam’s 1975 reunification, meaning that there have been more than 30 years of political stability in the country. The last major conflict with a neighboring country was almost 30 years ago, in 1978. Two American presidents (Bill Clinton during his presidency and in 2006, and George W. Bush during the APEC summit) have visited the country, and Bush met with several top officials including the president, prime minister, and Communist Party chief, thereby underscoring the country’s political stability.
Business Environment: Vietnam has had a free market since its centrally-planned economy was reformed through “doi moi” twenty years ago. Today, Vietnams’ policies create a warm and welcoming business environment for foreign investment. The country became the World Trade Organization’s 150th member in November of 2006, thanks to a vote of the organization’s General Council. At that time, Pascal Lamy, the Director-General of the WTO said, “Viet Nam has shown how anchoring domestic reforms in the WTO can yield dramatic results. Viet Nam’s economic growth topped 8% last year, foreign direct investment rose steeply to over $6 billion, and exports surged by over 20%. More must surely follow with the new laws, administrative measures, and commitments on goods and services that are in Viet Nam’s membership package.” Vietnam is also taking great strides in protecting intellectual property rights and since 2002 has largely been complying with the guidelines established in the WTO Trade-Related Aspects of Intellectual Property (TRIP). When Vietnam became a WTO member, it agreed to comply with TRIP immediately, without a transitional period. The country is expected to achieve full TRIP compliance soon, thanks to legislation that was passed in 2006. This legislation prompted the U.S. to laud the country for its “extensive revisions and updating of its intellectual property laws.”
Language: Unlike many Asian languages, Vietnamese uses the Latin alphabet, just as English does, which makes it relatively easy for Vietnamese speakers to learn English. English is the second most popular language in the country, and the majority of Vietnams’ college graduates have high proficiency in English. Consequently, most IT workers in Vietnam are able to communicate easily with U.S. companies in English when completing outsourcing projects.
4. Who outsources to Vietnam?
Many Japanese companies are choosing to outsource much of their IT work to Vietnam. According to a November 2006 article in GlobalServices, “Vietnam: Capitalizing on the China-Japan,” by the year 2010 as much as 10% of Japan’s software outsourcing may be sent to Vietnam.
Intel is also heavily reliant on Vietnam to meet its outsourcing needs. In October of 2006, Intel Capital, the unit involved in venture capital for the Intel Corporation, announced a $3.5 million investment in FPT, Vietnam’s largest software company, located in Hanoi. Earlier in that same year, the company said that it was going to build a factory for chip assembly and testing with a price tag of $300 million (San Jose Mercury News, “Intel Invests in Vietnam Software Company, October 24, 2006).
Other companies that have chosen to outsource to Vietnam include Nortel Networks, Bayer, Sony, Cisco, and Anheuser Bush (source: CIO.com, “Outsourcing to Vietnam”).
5. Vietnam Is an Excellent Outsourcing Destination
For all the reasons described above, Vietnam is clearly an excellent choice for meeting any business’ outsourcing needs. Here is a quantitative summary of the advantages of working with offshore providers located in Vietnam.
Price: Vietnam’s labor costs are significantly lower than those of many other companies
Labor Force: Vietnam’s labor force has a 96% literacy rate and high scientific and technological knowledge.
Socio-Economic Stability
Economic Stability: Vietnam has very high GDP growth, with significant foreign investment and membership in the World Trade Organization.
Ethnic/Religious Stability: There are no ethnic/religious conflicts in Vietnam.
Political Stability: Vietnam’s current government has been in place for more than 30 years and there have been no conflicts with neighboring countries for almost the same amount of time.
Business Environment: Vietnam’s laws and public policies favor business and foreign investment and the country is constantly strengthening its protection and enforcement of intellectual property rights.
Language: Most college graduates in Vietnam are fluent in English, which is the second-most popular language in the country, in large part thanks to Vietnamese’s use of the Latin alphabet.
Plumbing Tips For Homeowners
Topics: outsourcing | Comments Off
Job and outsourcing opportunities for Mechanical autocad engineer in US?
By admin | March 15, 2010
Manoj asked:
I am 66 years old and living in india. I worked in the past as a mechanical engineer but since several years i am an independent consultant in autocad. i want to know if i can get a job in the US or get outsourcing opportunities in India. I am visiting family in california in June. Is there possiblity for visa sponsorship?
Eagle Claw Fishing Rods
I am 66 years old and living in india. I worked in the past as a mechanical engineer but since several years i am an independent consultant in autocad. i want to know if i can get a job in the US or get outsourcing opportunities in India. I am visiting family in california in June. Is there possiblity for visa sponsorship?
Eagle Claw Fishing Rods
Topics: outsourcing | Comments Off
Ensure an Accurate and Up-to-date Database by Outsourcing Data Enrichment Services
By admin | March 14, 2010
Outsource India asked:
Data Enrichment involves a process whereby data is standardized, validated and corrected in order to maximize its integrity and value. Data intensive fields such as banking, insurance, retail, and telecommunications are in constant need of Data Enrichment Services and Data Extraction Services in order to acquire the business results they desire. Data Enrichment also helps source information that would give easy access to marketing, sales and support teams and all other personnel who interact with the customers on a daily basis. It also ensures that a company’s database - material files, product catalog files, and item information etc. - are current, accurate and complete.
Outsourcing to India reduces unnecessary costs and provides the best service available in the industry. Indian outsourcing companies offer the following data enrichment services
? Identification and removal of duplicate and incorrect data
? Removal of obsolete data
? Consolidation and interlinking of multiple data sources
? Page maker to Adobe PDF Conversions
? Verification of the accuracy of the customer data
? Validation of consolidated data (for example: using a post code checker to validate addresses)
? Enrichment of data – with product attributes, images, and manufacturer specifications
? Identification and tagging of similar records
? Identification of missing or incomplete data
? Removal of spurious and invalid records
? Comparison and removal of records matching third party information, such as the opt-in and opt-out list
? Data aggregation, organization, and cleansing
Businesses outsourcing their Data Enrichment Services to India are also benefitted by data scrubbing services. Data scrubbing software is used to systematically examine data for flaws by using rules, algorithms, and look-up tables. Since data may have been derived from various sources, its format is often inconsistent. By using the above tools the process of data cleansing is accelerated and both cost and effort is minimized.
Clients worldwide have now realized the huge benefits they reap by outsourcing their Data Enrichment Services to India. Since all projects are custom based to suit the exact needs of the customer, huge savings in terms of time, money and infrastructure are among the many advantages that outsourcing brings. The signing of Non-Disclosure Agreements and Service Level Agreements ensure that all Data Enrichment projects are secure and will be completed well before the given deadlines. A few other advantages are
? Skilled and qualified technical staff who are proficient in English
? Quick turn around time
? High quality records
? Cost-effective prices
? Well developed infrastructure and redundant systems that offer uninterrupted services
? Secure Network systems to ensure data safety
? Usage of Data Scrubbing tools to identify errors
Outsourcing of Data Enrichment Services not only saves businesses thousands of dollars and man hours but it also enables them to have a standardized database which will help them develop an edge over their competitors. Subscribing to data enrichment services would ensure an accurate and up-to -date database at a minimal cost.
PVC Plumbing Fittings
Data Enrichment involves a process whereby data is standardized, validated and corrected in order to maximize its integrity and value. Data intensive fields such as banking, insurance, retail, and telecommunications are in constant need of Data Enrichment Services and Data Extraction Services in order to acquire the business results they desire. Data Enrichment also helps source information that would give easy access to marketing, sales and support teams and all other personnel who interact with the customers on a daily basis. It also ensures that a company’s database - material files, product catalog files, and item information etc. - are current, accurate and complete.
Outsourcing to India reduces unnecessary costs and provides the best service available in the industry. Indian outsourcing companies offer the following data enrichment services
? Identification and removal of duplicate and incorrect data
? Removal of obsolete data
? Consolidation and interlinking of multiple data sources
? Page maker to Adobe PDF Conversions
? Verification of the accuracy of the customer data
? Validation of consolidated data (for example: using a post code checker to validate addresses)
? Enrichment of data – with product attributes, images, and manufacturer specifications
? Identification and tagging of similar records
? Identification of missing or incomplete data
? Removal of spurious and invalid records
? Comparison and removal of records matching third party information, such as the opt-in and opt-out list
? Data aggregation, organization, and cleansing
Businesses outsourcing their Data Enrichment Services to India are also benefitted by data scrubbing services. Data scrubbing software is used to systematically examine data for flaws by using rules, algorithms, and look-up tables. Since data may have been derived from various sources, its format is often inconsistent. By using the above tools the process of data cleansing is accelerated and both cost and effort is minimized.
Clients worldwide have now realized the huge benefits they reap by outsourcing their Data Enrichment Services to India. Since all projects are custom based to suit the exact needs of the customer, huge savings in terms of time, money and infrastructure are among the many advantages that outsourcing brings. The signing of Non-Disclosure Agreements and Service Level Agreements ensure that all Data Enrichment projects are secure and will be completed well before the given deadlines. A few other advantages are
? Skilled and qualified technical staff who are proficient in English
? Quick turn around time
? High quality records
? Cost-effective prices
? Well developed infrastructure and redundant systems that offer uninterrupted services
? Secure Network systems to ensure data safety
? Usage of Data Scrubbing tools to identify errors
Outsourcing of Data Enrichment Services not only saves businesses thousands of dollars and man hours but it also enables them to have a standardized database which will help them develop an edge over their competitors. Subscribing to data enrichment services would ensure an accurate and up-to -date database at a minimal cost.
PVC Plumbing Fittings
Topics: outsourcing | Comments Off
What led to the rapid increase of outsourcing in the last 10-20 years?
By admin | March 12, 2010
Just wondering asked:
Doing an essay on outsourcing, and would like to know factors that helped increase outsourcing
Doing an essay on outsourcing, and would like to know factors that helped increase outsourcing
Thanks
Glade Scented Candles
Topics: outsourcing | Comments Off
If illegal immigration is such a horrible thing because it takes so many jobs then why is outsourcing legal?
By admin | March 6, 2010
Soldier4Christ82 asked:
I hear people complaining all the time about how evil the big bad illegal Mexicans are but what about the people in India and other places who are taking our jobs? Why should it be legal for them to take our jobs when they don’t even live here, whereas the illegal immigrants do (although illegally)?
I hear people complaining all the time about how evil the big bad illegal Mexicans are but what about the people in India and other places who are taking our jobs? Why should it be legal for them to take our jobs when they don’t even live here, whereas the illegal immigrants do (although illegally)?
Does the fact that outsourcing is legal change the fact that it is taking jobs from American citizens just like illegal immigrants supposedly are?
Airless Paint Sprayer
Topics: outsourcing | Comments Off
Outsourcing: Business in the 21st Century
By admin | March 2, 2010
Alex Martin asked:
The word outsourcing is often heard in the world of business today. It is something which has affected the business of almost every nature and every nation. Outsourcing is occurring in almost every country of this world to some extent. There are some leader countries in this field of outsourcing such as India and China. Before moving towards the topic of this article let us first understand what outsourcing is.
What is Outsourcing?
When discussed in simple words outsourcing is simply �a formal agreement with a third party to perform a service for an organization�. A more comprehensive definition for outsourcing would be that outsourcing is the concept of taking internal company functions and paying an outside firm to handle them. It is basically done for the following major reasons:
-To save money in terms of lowering costs
-To improve quality
-To free company resources for other activities such as focusing more on competencies
The concept of outsourcing began with the data-processing industry and today it has spread to vase areas which comprise of tele-messaging and call centers. It would not all be wrong to say that outsourcing is the surge of the next generations. Another name used for outsourcing is off shoring which has the same meaning as outsourcing.
Technically speaking, outsourcing is not merely the contract with a third party to perform a service for an organization, but it also involves transferring a significant amount of management control and decision-making to the external supplier. The process of outsourcing is very much formal like other business processes and it always includes a considerable degree of two-way information exchange, coordination, and trust.
The concept of outsourcing gained popularity in the mid 1990�s since then the trend of outsourcing has increased to a great extent. The reason for this increase in the popularity of the concept of outsourcing was the rapid growth in the number of high-tech companies in the early 1990s that were often not vast or large enough to incorporate and run large customer service departments of their own.
Different Techniques of Outsourcing
The concept of outsourcing was adopted by different organizations in different methods such as in some cases the companies who desired to outsource their customer service:
-Hired technical writers in order to write simplified usage instructions of their products
-Index the key points of information
-Contracted with temporary employment agencies to search for, train and hire generally low-skilled workers to answer their telephone technical support and customer service calls
The most wide spread method of outsourcing being adopted throughout the world is of call centers. The people employed at the call centers answered the query calls of the customers, where the information needed to assist the calling customer was indexed in a computer system. In most cases the agents were not liable to tell the customers that they were not directly associated with the original manufacturer.
Outsourcing: Business in the 21st Century
As it has been discussed in the introductory paragraph of this article that outsourcing has become a buzz since the last few years. Almost every country and almost every organization is outsourcing a part of its tasks or some tasks. The reason that has been found for the increase in the trend of outsourcing for businesses is it increases profit and lower costs, and business focuses most on these aspects. For instance if we consider the example of IBM , which in the year 2003, decided to outsource the jobs of almost 5000 programmers to India and China. Similarly, Microsoft, Dell, American Express, and virtually every major multinational from Accenture to Yahoo has already outsourced work or is taking decisions to do so. From the studies of the outsourcing of these companies it has been found that the savings due to outsourcing are spectacular as companies can reduce around 20% to 70% of their labor costs by outsourcing jobs to low-wage nations considering that the work is of same quality.
The different Business tasks that are being outsourced in the 21st century
The concept of outsourcing is applied to a vast area of business processes or tasks. Every organization outsources� some particular tasks to a vendor. The task that was outsourced mostly when outsourcing began, was customer support, later with the advancement in technology and knowledge this limited area included IT, data analysis, Medicare, engineering and a few more. The following is an explanation of how these different tasks are outsourced:
Outsourcing Data Analysis
Every organization that is operating possesses a large amount of data, the useful information is mingled within this data, and retrieving it is a full time consuming task. This task is known as Data analysis. It is a complex task of extracting useful information from a pile of data. The process of data analysis occurs in operations like banking operations, retail or pharmaceutical research. The nature of analysis differs with the difference in data, each kind of data requires a different method of analysis. Some kind of data requires to be collected and calculated as a whole to present a final conclusion whereas some data requires to be studied individually. This comprehensive task when outsourced to a third party, reduces the extra work load and cost of the organization.
Outsourcing IT
Outsourcing IT is defined as using outside vendors to create, maintain, or reengineer IT architectures and systems. The methods of outsourcing that have been discussed earlier in this article are those which have now become old, one of the latest one is outsourcing IT. The process of outsourcing IT involves involves the effective management and operation of information technology assets of corporations from a remote location. To explain this concept, consider the example of the management of a computer network of a large corporation which includes outage monitoring, alarms monitoring, remote monitoring of data centers, etc. The nature of these operations is complex and requires a real-time support when needed. Hence it can be assumed that such processes cannot be easily outsourced to places where there is a big difference in the time zones. Such tasks are outsourced to comparable time zone locations, which are competitive.
Medicare
Outsourcing Medicare is a promising but debatable area. Outsourcing Medicare can include the following:
-The trivial keying in of the physicians transcript (in audio) of the treatment records into a structured documents to physically sending the patients to another country for treatment.
-Using the service of radiologists at a remote but competitive country to interpret scan images such as CT or MRI
An example of Medicare outsourcing can be taken is that of United Kingdom�s pronouncement to send blood and urine samples from National Health Service (NHS) patients to India for pathology tests to reduce cost. This outsourcing venture operates in the way that the pathology test whose results are not required urgently as not within 48 hours, are conducted at the clinical lab setup at Mumbai, India. The blood and urine samples are flown to Mumbai. The 24-hour lab conducts the test and the results are uploaded into the special network linked to the NHS. The NHS hospitals in the UK get the reports in 24 hours. This method has been effective in reducing costs. Another area of outsourcing related to the field of biology is bioinformatics and biotechnology.
Outsourcing research process
Outsourcing research processes is a small sector of outsourcing. Research processes are time consuming tasks which require a lot of attention and they are outsourced by breaking up into parts or in full. There are other names for research process outsourcing (RPO) is also known as Knowledge Process Outsourcing (KPO), as it requires extensive and high level knowledge to be applied. A pioneer of RPO is the company General Electric.
Outsourcing Engineering Design
Another area of outsourcing is designing, the designing of buildings to small thinks like watches and toys can be outsourced. The following are the different areas of engineering which can be outsourced.
-Structural design such as the designing of buildings, factories, bridges
-Hardware design such as designing of consumer electronics, home appliances, toys, industrial instruments
-Product design such as of medical devices, white goods, automobiles, etc.
-Architectural design, Mechanical engineering as gas turbines, aircraft engines, automobile parts, etc (Wikipedia: Outsourcing)
Water Vending Machines
The word outsourcing is often heard in the world of business today. It is something which has affected the business of almost every nature and every nation. Outsourcing is occurring in almost every country of this world to some extent. There are some leader countries in this field of outsourcing such as India and China. Before moving towards the topic of this article let us first understand what outsourcing is.
What is Outsourcing?
When discussed in simple words outsourcing is simply �a formal agreement with a third party to perform a service for an organization�. A more comprehensive definition for outsourcing would be that outsourcing is the concept of taking internal company functions and paying an outside firm to handle them. It is basically done for the following major reasons:
-To save money in terms of lowering costs
-To improve quality
-To free company resources for other activities such as focusing more on competencies
The concept of outsourcing began with the data-processing industry and today it has spread to vase areas which comprise of tele-messaging and call centers. It would not all be wrong to say that outsourcing is the surge of the next generations. Another name used for outsourcing is off shoring which has the same meaning as outsourcing.
Technically speaking, outsourcing is not merely the contract with a third party to perform a service for an organization, but it also involves transferring a significant amount of management control and decision-making to the external supplier. The process of outsourcing is very much formal like other business processes and it always includes a considerable degree of two-way information exchange, coordination, and trust.
The concept of outsourcing gained popularity in the mid 1990�s since then the trend of outsourcing has increased to a great extent. The reason for this increase in the popularity of the concept of outsourcing was the rapid growth in the number of high-tech companies in the early 1990s that were often not vast or large enough to incorporate and run large customer service departments of their own.
Different Techniques of Outsourcing
The concept of outsourcing was adopted by different organizations in different methods such as in some cases the companies who desired to outsource their customer service:
-Hired technical writers in order to write simplified usage instructions of their products
-Index the key points of information
-Contracted with temporary employment agencies to search for, train and hire generally low-skilled workers to answer their telephone technical support and customer service calls
The most wide spread method of outsourcing being adopted throughout the world is of call centers. The people employed at the call centers answered the query calls of the customers, where the information needed to assist the calling customer was indexed in a computer system. In most cases the agents were not liable to tell the customers that they were not directly associated with the original manufacturer.
Outsourcing: Business in the 21st Century
As it has been discussed in the introductory paragraph of this article that outsourcing has become a buzz since the last few years. Almost every country and almost every organization is outsourcing a part of its tasks or some tasks. The reason that has been found for the increase in the trend of outsourcing for businesses is it increases profit and lower costs, and business focuses most on these aspects. For instance if we consider the example of IBM , which in the year 2003, decided to outsource the jobs of almost 5000 programmers to India and China. Similarly, Microsoft, Dell, American Express, and virtually every major multinational from Accenture to Yahoo has already outsourced work or is taking decisions to do so. From the studies of the outsourcing of these companies it has been found that the savings due to outsourcing are spectacular as companies can reduce around 20% to 70% of their labor costs by outsourcing jobs to low-wage nations considering that the work is of same quality.
The different Business tasks that are being outsourced in the 21st century
The concept of outsourcing is applied to a vast area of business processes or tasks. Every organization outsources� some particular tasks to a vendor. The task that was outsourced mostly when outsourcing began, was customer support, later with the advancement in technology and knowledge this limited area included IT, data analysis, Medicare, engineering and a few more. The following is an explanation of how these different tasks are outsourced:
Outsourcing Data Analysis
Every organization that is operating possesses a large amount of data, the useful information is mingled within this data, and retrieving it is a full time consuming task. This task is known as Data analysis. It is a complex task of extracting useful information from a pile of data. The process of data analysis occurs in operations like banking operations, retail or pharmaceutical research. The nature of analysis differs with the difference in data, each kind of data requires a different method of analysis. Some kind of data requires to be collected and calculated as a whole to present a final conclusion whereas some data requires to be studied individually. This comprehensive task when outsourced to a third party, reduces the extra work load and cost of the organization.
Outsourcing IT
Outsourcing IT is defined as using outside vendors to create, maintain, or reengineer IT architectures and systems. The methods of outsourcing that have been discussed earlier in this article are those which have now become old, one of the latest one is outsourcing IT. The process of outsourcing IT involves involves the effective management and operation of information technology assets of corporations from a remote location. To explain this concept, consider the example of the management of a computer network of a large corporation which includes outage monitoring, alarms monitoring, remote monitoring of data centers, etc. The nature of these operations is complex and requires a real-time support when needed. Hence it can be assumed that such processes cannot be easily outsourced to places where there is a big difference in the time zones. Such tasks are outsourced to comparable time zone locations, which are competitive.
Medicare
Outsourcing Medicare is a promising but debatable area. Outsourcing Medicare can include the following:
-The trivial keying in of the physicians transcript (in audio) of the treatment records into a structured documents to physically sending the patients to another country for treatment.
-Using the service of radiologists at a remote but competitive country to interpret scan images such as CT or MRI
An example of Medicare outsourcing can be taken is that of United Kingdom�s pronouncement to send blood and urine samples from National Health Service (NHS) patients to India for pathology tests to reduce cost. This outsourcing venture operates in the way that the pathology test whose results are not required urgently as not within 48 hours, are conducted at the clinical lab setup at Mumbai, India. The blood and urine samples are flown to Mumbai. The 24-hour lab conducts the test and the results are uploaded into the special network linked to the NHS. The NHS hospitals in the UK get the reports in 24 hours. This method has been effective in reducing costs. Another area of outsourcing related to the field of biology is bioinformatics and biotechnology.
Outsourcing research process
Outsourcing research processes is a small sector of outsourcing. Research processes are time consuming tasks which require a lot of attention and they are outsourced by breaking up into parts or in full. There are other names for research process outsourcing (RPO) is also known as Knowledge Process Outsourcing (KPO), as it requires extensive and high level knowledge to be applied. A pioneer of RPO is the company General Electric.
Outsourcing Engineering Design
Another area of outsourcing is designing, the designing of buildings to small thinks like watches and toys can be outsourced. The following are the different areas of engineering which can be outsourced.
-Structural design such as the designing of buildings, factories, bridges
-Hardware design such as designing of consumer electronics, home appliances, toys, industrial instruments
-Product design such as of medical devices, white goods, automobiles, etc.
-Architectural design, Mechanical engineering as gas turbines, aircraft engines, automobile parts, etc (Wikipedia: Outsourcing)
Water Vending Machines
Topics: outsourcing | Comments Off
Do you think outsourcing is a good idea?
By admin | March 2, 2010
Nick asked:
They used to have me on the chopping block here for the past 2 months (I had to train my replacement). Rather large corporation in a heck of a lot of countries.
I had a good supervisor. She was actually looking for jobs in the corp for me, found me a job that cannot be outsourced. Fed sector.
They used to have me on the chopping block here for the past 2 months (I had to train my replacement). Rather large corporation in a heck of a lot of countries.
I had a good supervisor. She was actually looking for jobs in the corp for me, found me a job that cannot be outsourced. Fed sector.
I hate outsourcing. They need 3 Indians to do my old job. Language is an issue too often, but sometimes you find a couple speaking good english.
How To Administer Cpr
Topics: outsourcing | Comments Off
How is outsourcing jobs good for the economy when a U.S. company pays foreign employees a fraction of what?
By admin | February 21, 2010
mintman123 asked:
they would have to pay an american worker, but yet pay the people who endorse their product (like pro atheletes) millions of dollars, it doesn’t make sense. The sneaker that costs $25 to make sells for $160, how is that helping the american consumer?
Krylon Spray Paint
they would have to pay an american worker, but yet pay the people who endorse their product (like pro atheletes) millions of dollars, it doesn’t make sense. The sneaker that costs $25 to make sells for $160, how is that helping the american consumer?
Krylon Spray Paint
Topics: outsourcing | Comments Off
what do you think of computer programming jobs outsourcing to India?
By admin | February 20, 2010
-=LazE=- asked:
well, i am an Indian,and i was planning to work in U.S legally.actually i am a student,studying computer science.and after my bachelors(i may or may not go for masters),i was thinking of working in U.S.but looking at the IT jobs outsourcing to India (here),will it be a wise decision to plan to work in U.S? will i get an appropriate job for my degree?
Bamboo Vertical Blinds
well, i am an Indian,and i was planning to work in U.S legally.actually i am a student,studying computer science.and after my bachelors(i may or may not go for masters),i was thinking of working in U.S.but looking at the IT jobs outsourcing to India (here),will it be a wise decision to plan to work in U.S? will i get an appropriate job for my degree?
Bamboo Vertical Blinds
Topics: outsourcing | Comments Off
Law firms and outsourcing: Still a long way to go!
By admin | February 19, 2010
Valuenotes Outsourcing Practice asked:
Pune, India, 19 May 2009
Although legal services outsourcing has garnered a lot of media attention, there still is a sizeable proportion of the legal community that has not considered outsourcing legal services to lower cost destinations.
Offshoring of legal services to India began way back in 1995 when law firm Bickel & Brewer opened a captive facility in India. The legal services outsourcing industry started to attract significant attention only around 2005. In a matter of just a few years, the industry has grown to reach $225 million in revenues in 2008. However, this is only a very small portion (<5%) of the addressable market. According to the recent survey results, there is a low perceived benefit of outsourcing legal services amongst law firms and (if not addressed) this is likely to stunt the growth of the LPO industry.
Most of the law firms are relatively new in terms of their offshoring initiatives and have not integrated offshoring in their overall strategy. A large number of law firms, irrespective of their size, are apprehensive about sending their legal work to another country. While this does result from lawyers not being convinced about the benefits of offshoring, they also indicate concerns such as data security, client confidentiality and quality of work delivered.
Cost reduction was rated as the primary driver for offshoring legal services. Other significant drivers include client pressure to cut costs by offshoring, increasing workload, time differences and competitors’ decisions to offshore. According to Neeraja Kandala, lead analyst - Legal Services, “There seems to be some awareness about the benefits of offshoring, especially amongst those who offshore. However, for the majority, the drivers do not seem to be strong enough. Obviously, the benefits do not appear to be substantial to help over-ride their concerns.”
Data security and quality of work delivered emerged as the key concerns for law firms. Given the confidential nature of legal documents, it is understandable that law firms have apprehensions on the security aspect.
While several leading and experienced offshore legal service providers take adequate precautions to ensure that there is no data theft, this needs to be communicated to the law firms in a more convincing manner. Further, service providers need to gain the confidence of buyers that a satisfactory end product will be delivered. According to Arun Jethmalani, CEO, ValueNotes, “This is the challenge for the provider community as a whole, but inconsistency in quality between the good and not-so-good providers will remain a problem until sufficient maturity is achieved – both by buyers and sellers.”
The ValueNotes report: “Legal Services Outsourcing: What do Law Firms Think?” provides an understanding of the offshoring awareness, drivers and concerns of US and UK based law firms. The survey throws light on the perceptions towards the associated risks and rewards of outsourcing legal services to low cost destinations.
Outdoor Gas Fireplace
Pune, India, 19 May 2009
Although legal services outsourcing has garnered a lot of media attention, there still is a sizeable proportion of the legal community that has not considered outsourcing legal services to lower cost destinations.
Offshoring of legal services to India began way back in 1995 when law firm Bickel & Brewer opened a captive facility in India. The legal services outsourcing industry started to attract significant attention only around 2005. In a matter of just a few years, the industry has grown to reach $225 million in revenues in 2008. However, this is only a very small portion (<5%) of the addressable market. According to the recent survey results, there is a low perceived benefit of outsourcing legal services amongst law firms and (if not addressed) this is likely to stunt the growth of the LPO industry.
Most of the law firms are relatively new in terms of their offshoring initiatives and have not integrated offshoring in their overall strategy. A large number of law firms, irrespective of their size, are apprehensive about sending their legal work to another country. While this does result from lawyers not being convinced about the benefits of offshoring, they also indicate concerns such as data security, client confidentiality and quality of work delivered.
Cost reduction was rated as the primary driver for offshoring legal services. Other significant drivers include client pressure to cut costs by offshoring, increasing workload, time differences and competitors’ decisions to offshore. According to Neeraja Kandala, lead analyst - Legal Services, “There seems to be some awareness about the benefits of offshoring, especially amongst those who offshore. However, for the majority, the drivers do not seem to be strong enough. Obviously, the benefits do not appear to be substantial to help over-ride their concerns.”
Data security and quality of work delivered emerged as the key concerns for law firms. Given the confidential nature of legal documents, it is understandable that law firms have apprehensions on the security aspect.
While several leading and experienced offshore legal service providers take adequate precautions to ensure that there is no data theft, this needs to be communicated to the law firms in a more convincing manner. Further, service providers need to gain the confidence of buyers that a satisfactory end product will be delivered. According to Arun Jethmalani, CEO, ValueNotes, “This is the challenge for the provider community as a whole, but inconsistency in quality between the good and not-so-good providers will remain a problem until sufficient maturity is achieved – both by buyers and sellers.”
The ValueNotes report: “Legal Services Outsourcing: What do Law Firms Think?” provides an understanding of the offshoring awareness, drivers and concerns of US and UK based law firms. The survey throws light on the perceptions towards the associated risks and rewards of outsourcing legal services to low cost destinations.
Outdoor Gas Fireplace
Topics: outsourcing | Comments Off
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