The Business Intelligence Network is running an article on the top trends in business intelligence and data warehousing. One, trend # 3, touches on offshoring of these functions. Here’s an excerpt (but link over to read the full write-up).
More and more financial service institutions are negotiating contracts with offshore firms. However, they are negotiating Service Level Agreements (SLAs) that actually have teeth in them to protect the cost advantage they are trying to capture. As they push for these strong SLAs, two things are happening:
- First, the offshore companies are starting to develop an ONSHORE presence so that they can better monitor their SLA exposure and develop clear communications with their clients.
- Second, financial institutions are realizing that their decision is not just onshore vs. offshore. It is evolving to be more complex. Seeking to upset the cost advantage of the traditional offshore companies, onshore firms are developing capabilities that expand the decision to onsite vs. offsite vs. offshore.
On another note, I’ll be out of the office for a few days learning what there is to learn from the government of Ottawa about nearshoring to its part of the world. I’ll feed blog posts from there when I can — though they’ve got us more booked up than a magic act working the summer state fair circuit. If I miss a day, don't you worry. You'll still get your daily dose of Sourcingmag.com's outsourcing advice because I've put some entries into the system to "auto-blog."
