Analyst firm Frost & Sullivan served up some depressing news on Valentine's Day for IT professionals in the US, UK, France, Germany, Japan and Hong Kong. Those are the countries that offshored a total of $51.6 billion in IT jobs to lower-cost locations, including Brazil, Mexico, Romania, Poland, Russia, India, Malaysia and China. This according to coverage on Tekrati.
The article points out that "Poland is experiencing the fastest IT job acquisition rate of all low-cost countries."
Among the tidbits of advice and insight:
Multiple time zones complicate the issues surrounding successful completion of outsourcing projects, especially while struggling to meet important project deadlines.
Establishing realistic timelines and performance metrics would allow companies to monitor progress at regular intervals and ensure on-schedule project completion. Additionally, stringent service-level agreements ensure compulsory adherence to projected cost savings.
Selection of an appropriate offshore outsourcing company is important for successful outsourcing. Companies can match their needs to the services offered through a complete analysis of cost differentials, standards, service levels, certifications, and risk mitigation.
Companies in higher cost countries can also benefit from the tax incentives offered by many offshore outsourcing countries. For example, India provides 100 percent tax deduction on all foreign export profits and a five-year tax holiday for offices that are set up to service the hardware and software industries.