Monday, March 9, 2009

News of the Day

Will border violence hurt offshore outsourcing into Mexico?
An analyst at Datamonitor posted this story on Local The author poses the question as to whether or not recent media reports of drug-related violence at the U.S.-Mexico border will cause companies to rethink their offshoring to Mexico. He does not think outsourcers and their clients should make hasty decisions. For the entire article please refer to the link above.

JPMorgan to up outsourcing to India by 25%
JP Morgan Chase announced it will increase its outsourcing to India by 25% this year to nearly $400 million. The report from Economic Times India states that as of now, JP Morgan outsources $250-300 million worth of IT and back-office projects every year to Cognizant, TCS and Accenture, apart from to its own captive centre in Mumbai. The entire article can be found via the link above.

Outsourcing: China vs. India
This story in Offshore - Outsourcing World explains that during the current global recession, due to the downtown in the manufacturing and export sector, China has selected outsourcing as a new arena for economic growth. China’s exports dropped rapidly in the fourth quarter of 2008. In December, China’s export growth was -2.8%, bringing the growth rate for 2008 to 17.2%, which is 2.1% lower than the growth in the first 11 months of that same year. However service outsourcing grew pace of 54.3% to US$1.6 billion by the end of 2008. The growth in the whole year was 6.2% higher than the growth in the first 11 months. Given these results China is now eager to promote outsourcing, but the question is, can China’s outsourcing be competitive with that of India. Please click on the above link for the entire story.

LLP Act to Drive Legal Outsourcing Competition
A recent article in IP-Review-Online states that a liberalised Indian legal system may be on the horizon, following the long-awaited publication of the Limited Liability Partnership Act. First proposed in 2006. The author states that the LLP Act could transform India's legal market into one of the fasting growing in the world. The author advises that the legislation had 'important implications for legal outsourcing companies' by cementing the 'bond of trust’ between them and their law firm clients. For a complete review of the article please click on the above link.

Survey Finds Little Decline in Outsourcing Despite Economy
IT Business Edge posted a story about the expected trend in outsourcing given the current state of the economy. The author cites the results of a survey taken at the annual conference of the International Association of Outsourcing Professionals. The consensus is that they will do the same amount of outsourcing or more in this down economy. For the complete story please click on the following link.

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