Trends & Vision Newsletter
EDITORIAL: THE IMMINENT SHIFT TOWARDS RESULTS ORIENTED OUTSOURCING ENGAGEMENTS
A shift is taking place in an IT services market that has grown accustomed to Time & Materials pricing models. Effort based pricing and labor arbitrage models have shown signs of true fatigue. Continued currency revaluation of the Rupee, the Euro and the Brazilian Real against the US dollar; raising salaries, combined with increased attrition in traditional offshore destinations, have significantly eroded the benefits of salary arbitration. Organizations are revising their sourcing strategies.
Outcome based outsourcing contracts are now in the crosshairs of sourcing organizations – moving away from time-sheet based models. In parallel, many organizations are increasingly evaluating alternative sourcing locations.
In 2007 we added a record number of clients to our nearshore services portfolio, most of them are mature global services buyers looking at nearshore alternatives either to diversify or complement their India component, thus solidifying their global sourcing efforts.
Together, these trends will rapidly drive the maturity of the vendor-client relationship model into the next level; characterized by results-driven engagements delivered by a geographically dispersed global pool of talent. The model hedges country risk, expands the talent pool and increases efficiency.
We have gathered a set of resources around the topics of Results Driven Application Outsourcing and Global Sourcing. These resources include a series of white papers, free independent reports from Forrester, and on-demand webinars featuring respected analysts in the sourcing and vendor management fields.
We hope these tools serve you as guideline, or benchmarking tools to take advantage of the imminent shift.
I’d love to hear your comments or suggestions regarding this newsletter. I can be reached at alejandro.camino@softtek.com.
Best Regards,
Alejandro Camino
Softtek VP of Marketing & Communications
Softtek Though Leadership Officer
alejandro.camino@softtek.com
CASE STUDY
PM Network - A Closer Look: Novell
Multisourcing can be an awfully scary prospect as companies try to choose —and manage— a long list of vendors scattered around the world. But some companies are forging a different path. Software giant Novell, for one, taps into a handful of vetted vendors with established satellite teams fluent in the ways of the local culture.
RESOURCES FOR RESULTS ORIENTED OUTSOURCING
Softtek White Paper - Evolving from timesheets to deliverables
Learn about the need to move away from staffing engagements and get to know the benefits that modern SLA governed deliverables driven engagements can bring to your organization here.
Softtek White Paper - A blueprint to evolve beyond staff augmentation
Read practical, actionable advice based on lessons learned at Softtek after years of polishing a next generation outsourcing model, that will help you make smoother transitions to mature SLA based engagements.
Report - From FTEs To Results: Going Beyond Labor Arbitrage To Managed Outcome Relationships
Learn how mature organizations are increasingly moving towards outcome based engagements, and moving away from traditional timesheets management (free report published in March 2007 by Forrester Research, courtesy of Softtek).
Free Webinar – “Turning Time & Materials Engagements To Fixed-Outcome Relationships”
Featuring Bill Martorelli, Forrester Research
RECOMMENDED READING
Source Code China - The New Global Hub of IT Outsourcing
"After reading this book, you'll see once again how China is positioning itself for leadership in this growing area," says Deloitte’s CEO William G. Parrett about Cyrill’s “Source Code China, The New Global Hub of IT Outsourcing “.Cyrill Eltschinger is currently EVP of Softtek Asia and our CEO for China - Buy the book
Forrester Wave™: SAP Implementation Providers, Q4 2007
The report from Forrester Research mentions that “Softtek, the best-known Mexican IT service provider, is used to competing head-to-head with both the Indian players and the large multinationals.”
SOFTTEK NEWS
Softtek introduces Softtek Asia with expansion of Global Delivery Center in China: Softtek Asia will begin operating as Softtek Asia, formerly I.T. UNITED through the third quarter of 2008, after which it will be referred to as Softtek Asia.
Softtek wins SAP Award of Excellence for Best Regional Partner: The annual award won by Softtek is based on SAP’s own customer satisfaction surveys for 2007 and considers both the number of mentions for each partner as well as the survey satisfaction scores.
Softtek, “South of the Border” leader according to NeoIT and GSM: Softtek has retained its title as the “Leader, South of the Border”, for the third year in a row in the Global Services 100 list 2008 by NeoIT and GSM, besides ranking as one of the top 10 “Best Performing IT Services Providers” globally.
About Softtek:
Founded in 1982, Softtek is a global provider of IT and business process solutions with close to 6,000 associates across 30 offices in North America, Latin America, Europe and Asia. With eight Global Delivery Centers in Mexico, Brazil, Spain and China, Softtek provides in-depth, high-quality and cost-effective solutions to top-tier corporations in over 20 countries through on-site, on-shore and its trademarked Global Near ShoreTM service delivery models. Creator and leader of the Near Shore® Industry, Softtek is the largest private IT service provider in Latin America. For more information, visit www.softtek.com.