Offshore outsourcing is a huge trend and is here to stay. Consider the following statements from well known, independent research and consulting firms.

While additional costs are incurred by offshoring in terms of telecommunications and the management of the offshore facility, the benefits in terms of wage differentials are impressive, accounting for at least 45 to 55 percent saving in the cost base. But that’s not the full story. Reengineering the process design can further increase this potential saving to 60 to 70 percent of initial costs.

Worldwide demand for offshore technology labour will reach almost 1 million by 2005 if unconstrained. The report goes on to say that there will be a tripling of offshore budgets at very large companies (> 5,000 employees) and that new middle market consumers (1,000 – 5,000 employees) will account 10% of US demand from current 1% and that from regions like Europe and Japan companies will account 34% of demand in 2005, compared to 28% today.

The economic model and advantages offered by offshoring work are overwhelming. Having said this most companies prefer not to start captive development centers in offshore locations.

By 2005, Forrester Research predicts that 64% of companies going offshore will adopt an indirect engagement approach, meaning they will hire firms like Cambridge Solutions to give them all the benefits of offshoring without being distracted by the challenges of making such a model work.

Cambridge Solutions has outstanding development facilities equipped with state of the art resources in Singapore, Chennai and Bangalore. Additionally it runs on shore centers in the US and UK.

Cambridge believes that it makes a good partner to firms that wish to outsource work offshore because:

• It offers wide range of flexible engagement models (fixed price, performance or time&material oriented engagements, competency centers, build-operate-transfer models, joint ventures and so on)
• It has superb facilities and access to the very best resident talent
• It has robust, process oriented methodologies
• It has a global presence to support operations that span many geographies
• Impeccable, high quality CMM Level 5 delivery (among an elite group of a hundred countries certified at this highest level)
• It has several re-useable assets that it can offer clients so that they do not have to spend money on re-creating frameworks that Cambridge has built.

Next Steps:
For more information on our offshore outsourcing capabilities contact at asiapacific@scandent.com

(Source: McKinsey & Company)
(Source: Christine Spivey Overby of Forrester Research)

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