Gartner rates offshore outsourcing hot spots

Gartner rates offshore outsourcing hot spots

Summary: Gartner on Thursday walked IT folks through its global sourcing--also known as offshore outsourcing--methodology in a spiel that was part informative and part subtle hint that the consulting and research firm offers these services.Much of analyst Frances Karamouzis' talk at the Gartner Symposium ITxpo focused on the basics such as determining why you want to go offshore, what's the business impact and the people headaches you may encounter.

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Gartner on Thursday walked IT folks through its global sourcing--also known as offshore outsourcing--methodology in a spiel that was part informative and part subtle hint that the consulting and research firm offers these services.

Much of analyst Frances Karamouzis' talk at the Gartner Symposium ITxpo focused on the basics such as determining why you want to go offshore, what's the business impact and the people headaches you may encounter. But amid all the holistic models and other management-speak Gartner went all Consumer Reports with its ratings. The charts that follow are worth the price of admission (and maybe even worth the Gartner subscription).

Here's a look at Gartner's ratings for the Americas:

offshore1.png

And Europe, Middle East and Africa:

offshore2.png

And Asia Pacific:

offshore3.png

Reading between the lines I wonder how many IT execs would seriously consider half of these locales including some of the up-and-coming countries like Morocco, Latvia, Egypt and Panama.

My hunch is that Gartner's chat is probably geared toward massive multinationals. But given Canada and India were really the only two that knocked Gartner's scorecard out of the park it may make sense to start there. Another looming question: How would states in the U.S. stack up? Would it make sense to stay at home and play the labor arbitrage game by state?

Topics: Outsourcing, Banking, CXO, Enterprise Software, IT Priorities

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4 comments
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  • Obviously

    nobody at Gartner have ever used an Indian call centre or they would quickly adjust the language skill rating !

    As for security, a famous starship engineer once said "the more the plumbing the easier it is to spring a leak"
    Alan Smithie
  • RE: Gartner rates offshore outsourcing hot spots

    If you check the numbers closely, you might find found that India, did not score that high after all. It is on par with Mexico and lower than Ireland (just to mention two). So, either we don't have access to all the data here, or your interpretation is a little biased, Larry.
    Outsourcing to India has shown to be very problematic. A few of my friends, mentioned $100M+ contracts never delivered, constant time, language and cultural barriers. Even here on ZD Net forums, you will find a few posts that will confirm my personal opinion, that India, and the big three outsourcing companies from there, might not be your best outsourcing partners, if you need them in the first place, but that's an entirely different discussion.
    DarekD
  • RE: How would the states in the U.S. stack up?

    If you're looking at offshoring there are most likely one of
    two things motivating you (or both):
    1. Price
    2. Bandwidth

    Regarding price you're paying 81 cents on the dollar in
    Canada (where I happen to be). We have a similar culture,
    no language barrier (unless you count sentences
    interspersed with 'Ay' as a barrier to understanding), and
    can travel to any city in the U.S. about as fast as someone
    in NY/ New England could.

    When I say 'bandwidth' I'm referring to an IT group's ability
    to deliver the projects in its portfolio. Often staff is the
    limiting factor. Sometimes expertise is. The advantage of
    offshoring is its turn-key nature. You can hand off the
    entire project to the outsourcer, requiring them to be fully
    responsible for spec'ing it, managing it, and delivering it.

    I agree that offshoring to India doesn't work unless you've
    got a strong local presence to function as relationship
    manager and business analyst. They also need to be very
    strong in development best practices. CMMI levels are a
    fair way to gauge this although you still need to do an
    independent verification to ensure the team who'll be
    working on your project is CMMI certified. Furthermore,
    using an iterative approach to development with multiple
    executable (working) deliverables is critical.

    We're in Montreal, Quebec, just 1 hour flying time from NY
    city with access to four local universities, lots of colleges
    and a population of 4 million. If you're looking for
    guidance or resources give us a shout at
    http://knowledgework.ca
    asad.quraishi@...
  • RE: Gartner rates offshore outsourcing hot spots

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