SigEx Ventures : Blogs for yesterday, Monday 23 JulyTo outsource or not to outsource? That isn’t the question anymoreby Ana Maria Ciobanu

We seem to be hearing more often the word- „outsourcing”. Recently outsourcing is associated with hiving off various business processes to companies in countries such as India Outsourcing used to be a $930-billion industry in 2006. Impressive? In three years it is expected to grow at $1.43 trillion according to a Frost & Sullivan study. The information technology outsourcing trend attracts many companies but these companies should consider more aspects of competitiveness apart from cost effectiveness. The market needs more and more value creation and this is going to change the landscape of outsourcing very soon. India needs to understand this, as it is confronting with a very interesting problem- global outsourcing giants are shifting their bases away from India to other parts of the world like: China, Ireland, Malaysia, Mexico, the Czech Republic, Poland, Philippines and Canada-countries that have the cost advantage, the quality and availability of human capital and the infrastructure to support it. The top three spenders in 2006 on SSO were the financial and insurance sector with $273 billion, technology and ICT at $233 billion, and health care at $130 billion, accounting in all for more than 50% of SSO spending, according to Frost & Sullivan. There are more areas involved in outsourcing though- areas such as and logistics ($113 billion), energy ($84 billion) and fast-moving consumer goods (FMCG) at $59 billion. Companies will have to prevent the overheat of the SSO market because India has reached this stage in only three years. We’ve read and heard several opinions in these past years about outsourcing but we need to understand that these companies aren’t trying to take away the industry from several countries, but to complement them by mixing local talent with outside talent, a little bit of salt and a little bit of spice.

by Ana Maria Ciobanu for SigEx Ventures (http://sigexventures.com)

SigEx Ventures's matrix of properties are quickly becoming leaders in digital telebroadcasting, free content delivery allowing people to easily talk, view, upload and share through free online TV broadcasting, free unlimited global calls, video blogs and SMS. SigEx Ventures invests in projects deploying "free" to add-on royalty revenue models