Alternate Outsourcing Models Gain Popularity

In this article about the shift toward companies pursuing alternate outsourcing models due to the evolving state of the industry and benefits, Rakesh Bhatia, senior associate, delves into options such as increasing onsite work, insourcing, selective multisourcing and captive offshore centers. Sample excerpt: “With today’s business climate becoming more competitive, outsourcing has become a key consideration for companies looking to save money and improve their profit margins. The attractiveness of offshore outsourcing has continued to increase, and more than 75 percent of the top 2,000 global companies now use some type of offshore outsourcing.
Offshoring has become a big-ticket spend item, with offshore IT outsourcing contracts typically consuming more than 20 percent of an organization’s total IT vendor spend. And while cost reduction is usually cited as the primary reason for offshoring, the actual savings have been as low as 15 percent, and are often short of the targeted savings that originally drove the business case.”

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