Bluerock Special Report : Offshoring

Offshore outsourcing - offshoring - is a variation on traditional outsourcing, whereby an organisation pays another company to provide services which it might otherwise have employed its own staff to perform, e.g. software development, call centre operations, etc. However, in this instance the provider of the services does so using staff and facilities located in a different country from where the services are consumed. Typically the vendor company is located in India, but increasingly this could be the Philippines, Vietnam or somewhere in Eastern Europe.

Offshoring is currently attracting much interest in the business community, both as a means of gaining access to new resources and as a way of cutting costs.

The biggest benefit that most companies expect to gain from offshore outsourcing is a reduction in their underlying cost base. Whilst this may simplistically equate to a 70-80% reduction in direct labour costs, total savings tend to be far less impressive. Experience tends to suggest that cost savings in the region of 40% are more realistic.

Bluerock Consulting has evolved its own, tried and trusted methodology for outsourcing. This methodology has continued to evolve and the latest iteration has been adapted to cater for specific lessons learnt from the recent offshore outsourcing projects that we have been involved in. Services offered include:

    Sourcing strategy creation.
    Business case development.
    Vendor and country analysis.
    RFP / ITT preparation and due diligence.
    Transition project and programme management.
    Post implementation review / health check.

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