Offshoring Affecting Alternative Industries

France a Hub for Outsourcing Clinical Trials
Global Atlanta.com ran a story today that shows offshoring is reaching out to fields of study that are far outside the manufacturing sector. Companies are emerging all over the world to handle specific tasks at lower costs and with higher expertise. This phenomenon has extended to the health care field. France is benefiting from its success as a destination for outsourcing in a specialized biotechnology field.

Blog coverage of The Services Shift

Blogging has been slow because of travel. I will have much more time in the coming weeks.

A couple pointers to interesting discussions elsewhere:

1. Stan Lepeak over at the EquaSiis blog provides a nice review of the book.

2. Mark Robinson at Provocations and Cogitations blog also provides a strong review.

3. Remi Vespa at the About IT Outsourcing blog also reviews the book.

Thanks to all. Now to translate this into sales. I hope you'll check out the book at Amazon and consider purchasing.

A Couple of Sites to Visit

While performing a web search for information on offshoring I came across two additional resources for information on the topic.

• Outsourcing Magazine is available in hard copy or online. Registration is free.


• SourcingMag.com Blogosphere is a source for you to view postings from a number of bloggers on the topic.

Today's News

Transparency in Outsourcing:
This article in E-Commerce Times discusses the laws governing the disclosure of layoffs and the state of the outsourcing market.

Legal Process Outsourcing (LPO) Adds Value to the Role of Intellectual Property:
IP Review Online ran an article on LPO stating that it can be helpful to patent or trademark attorneys where the emphasis is on record keeping. The author explains that the problem most companies have is that record keeping is time-consuming. LPOs can provide the training and resources required.

Porsche Finds Fortune from Unlikely Outsourcing
Helsinki Times ran an article on how Porsche has been able to utilize outsourcing in Finland to their financial advantage. While many companies have moved work to India, China and Taiwan Porsche has taken a different approach.

IBM Targets India to Beat Rivals at Their Own Game
Bloomberg.com reported that IBM has hired more than 70,000 employees in India, taking advantage of the “hyper-growth” there by helping domestic companies develop infrastructure. IBM also may attract new customers from India’s Satyam which is still involved in the nation’s largest accounting scandal.

New Findings Highlight Economic Impact on Recruitment Process Outsourcing

Marketwire.com reported that organizations that outsource their recruitment activities are achieving significant gains.

"Buy Amercian Does Not Come Free"

During his visit to India Bob was interviewed on the widely debated issue of offshoring of service activities and its profound impact on businesses and governments in both developed and developing countries. Pragati Verma caught up with Bob to understand the drivers and implications of the globalisation of service activities. The question and answer session is covered in full and can be reviewed by using the following link.

News of the Day

Outsourcing Is Not a Cure-All
An article posted in Smart Brief advises that “Outsourcing can bring rapid balance sheet results, but that doesn’t automatically translate into long-term business value. There’s a vast difference between externalizing for financial re-engineering versus business transformation.”

Scotland Missing out on Outsourcing Bonanza
Scotland could become the next big outsourcing destination, but is being held back by a lack of enthusiasm according to some Scottish executives. Interviews revealed overwhelmingly that moving back-office operations to Scotland would be a better alternative to destinations such as India and eastern Europe. Posted in Vuenet.com

Todays' Offshoring News

Sallie Mae to Create 2,000 US Jobs, Reverse Outsourcing
Biz Journal.com reported Sallie Mae plans to create 2,000 jobs in the United States by reversing previous outsourcing actions and bringing all of its overseas operations back to America.

Smooth the Path of Outsourcing.
An article written in today's SMEweb.com discusses the fact that today's global economic crisis is creating untold challenges for businesses in all industries, in all corners of the world. Business leaders of large and small companies alike are struggling to weather the storm that is affecting the survival of many once solid companies. The author lists several basic steps that companies need to understand when heading into the offshoring arena.

Outsourcing In Game Industry on the Increase
This article in the GAMASUTRA.com website shows that offshoring is taking place in many industries. The computer game development industry is starting to see an increase in their outsourcing budgets by nearly twofold, with the proportion of companies planning to spend $2 million or more on outsourcing rising to almost 20% in 2008.

Campbell Soup Signs 65 Month Agreement with IBM for Outsourcing Services
RTT News.com reported that Campbell Soup Company has signed a 65-month agreement for information technology outsourcing services. As part of the agreement, IBM will provide IT infrastructure services, network support, application maintenance services and security services from IBM Internet Security Systems. IBM will offer infrastructure services on demand for enhanced cost efficiency and increased flexibility.

Today's News

Microsoft Applying for Fewer H-1B Visas
The Seattle Times reported that with ongoing layoffs and hiring slowed across the economy. Microsoft this year is applying for "substantially fewer" H-1B visas. But their General Counsel Brad Smith said that Microsoft "still sees the program as an important part of its strategy to hire the best people, regardless of their citizenship. Of the "new applications" the company is filing for the 2010 fiscal year ' a solid majority' are to convert existing employees working on so-called L visas to H-1B visas, rather than to make new hires"

Kaiser Outsourcing Deal Leads to Job Cuts
Kaiser Permanente announced March 16 that it would outsource the management and storage of most of its data to IBM, eliminating about 700 jobs at Kaiser. The same day the seven-year deal was announced, Kaiser said it would eliminate 160 other information technology jobs in more than 30 locations across the country "as part of a realignment of its information technology function," according to a company statement. None of the positions were in areas that would affect patients or physicians, Kaiser spokeswoman Laura Dunn said in an e-mailed statement.

Outsourcing 2.0: What's the new India?
A report was issued by the London School of Economics explaining that the global growth in IT and business process outsourcing (BPO) in various new countries across the globe will allow businesses to gamble on many different off shoring deals. The author states "Off shoring today is a transitionary phase in a much larger movement towards a global division of labor." The predicted growth in the global ITO and BPO markets with outsourcing revenue is set to grow between six and nine per cent each year. The UK is predicted to have a shortfall of more than 14,000 IT specialists by 2010 and the US a shortage of 15 million by 2025. For a full review of the article please use the above link.

Transparency in Outsourcing, Part 1: Silent Shrinkage
Sometimes when companies lay off thousands of workers, they actively publicize the action in order to appease investors. Other times, little to no fanfare is made at all. Often times, at least some of these eliminated positions are actually being outsourced -- are outsourcing firms cleaning up during an overall economic recession? This article posted in E-Commerce Times discusses the premise that concerns about public outcries due to offshoring is NOT inhibiting companies from continuing their efforts.

Bob's Live Interview on Marketplace.Public Radio

Bob was interviewed live on marketplace.publicradio.org by Ms. Renita Jablonski. The discussion focused on how H-1B visas affect US jobs. To listen to the full interview or read the article please click on the above link.

In The Teeth Of The Economic Storm: Globalize!

Bob posted an Op Ed piece in Forbes.com to discuss off shoring and the global economic crisis. Several key points include: The global economic crisis has political and business leaders thinking defensively--increasing trade protection, pushing "buy American" provisions in major legislation, attempting to curtail the use of H-1B visas, the documents that allow highly skilled nonimmigrant workers into the country. The most prominent example of this bad trend is the amendment to the Troubled Asset Relief Program legislation, inserted by Sens. Grassley, Sanders and Durbin, that makes it nearly impossible for financial firms to hire talented foreign nationals--at least to work in the U.S.

The instinct among business leaders during crisis is often to do whatever is necessary to make the politicians and activists happy. This instinct is understandable. It's also wrong and ultimately destructive. This article generated quite a few responses. To investigate further please click on the above link.