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Inside Outsourcing

Alex Blues
Computer Weekly - blog
9 February 2010

Day 1 - Nasscom

This year's NASSCOM (National Association of Software and Services Companies) conference in Mumbai is an event that I have seen grow to one of the largest global conferences, with over 1600 delegates, 120 speakers, 130 suppliers and 22 trade delegations promoting their country as an offshore destination.

Compared to last year the atmosphere is upbeat. Last year, the recession was politely ignored but still the elephant in the corner, Mumbai was still reeling from the terrorist bomb attack and the Satyam debacle was in danger of wrecking the Indian Outsourcing industry. This year, these issues have been forgotten, but there is still a sense of realism that the days of 30-40% growth are ancient history.

The key messages so far are:

  • The cloud is going to dramatically change the industry

  • The offshore industry is no longer about wage arbitrage, it is about providing business value

  • Specialism is key to success and the offshore industry is no longer just about applications management and development

  • In the next decade, an astonishing 80% of the new opportunities are expected to come out from new areas

  • Collaboration is key, be it across public and private sector, or across continents, or across partners

  • Buyers will demand more flexibility and eternal contracts will become extinct

  • Education systems will be challenged to produce employees with new skills - skills that remain undefined today and will constantly evolve!

  • Procurement as a function will evolve and buyers will invest more in Governance and supplier management

  • Industry will be challenged to find ways to support businesses to drive down the costs of services and products


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