Dhruv PatelBill Hays

Cindy SteinmetzWill Isom

Lindsey Bryan

What is IT Outsourcing?What is IT Outsourcing?

“… “… is using outside vendor to create, maintain, is using outside vendor to create, maintain, or engineer IT architectures and systems …”or engineer IT architectures and systems …”

Originally started as a big trend for major companies to hire Originally started as a big trend for major companies to hire out side firms to handle and mange their IT departmentsout side firms to handle and mange their IT departments

Why kept in houseWhy kept in house Capital availabilityCapital availability Engineering know howEngineering know how Tailored to fitTailored to fit

Why outsourcedWhy outsourced CostCost Know how increased in the market placeKnow how increased in the market place Lot of success with mass productionLot of success with mass production

}Almost LikeNatural Evolution

What is IT OutsourcingWhat is IT Outsourcing Currently the big deal is “Offshore” outsourcingCurrently the big deal is “Offshore” outsourcing

IT jobs moving outside the countryIT jobs moving outside the country Using firms outside the country for IT needsUsing firms outside the country for IT needs Companies opening their own IT departments in different Companies opening their own IT departments in different

countries to handle IT needscountries to handle IT needs ““Offshore” and “Outsourcing” have become synonymous Offshore” and “Outsourcing” have become synonymous

Involves all aspects of IT not just someInvolves all aspects of IT not just some DevelopmentDevelopment ImplementationImplementation Maintenance/monitoringMaintenance/monitoring HousingHousing

Physical hardware being therePhysical hardware being there No remote maintenance (dialing in)No remote maintenance (dialing in)

What are the jobs What are the jobs involved?involved?

Mostly all aspects of ITMostly all aspects of IT Due to nature of jobsDue to nature of jobs Some limitationsSome limitations

Hardware troubleshootingHardware troubleshooting Solution housing hardware offshore as wellSolution housing hardware offshore as well

Bandwidth increases breaking Bandwidth increases breaking limitationslimitations

How big is the How big is the phenomenon?phenomenon?

IT is big moneyIT is big money Lot of money put into ITLot of money put into IT Latest way to improve business productivityLatest way to improve business productivity In most cases cost vs. benefit ratio highIn most cases cost vs. benefit ratio high

Now think about cutting costsNow think about cutting costs Cost cut 15%-60%Cost cut 15%-60% No loss of qualityNo loss of quality

Put both together big deal from business point of Put both together big deal from business point of viewview

Expected to grow by 6% annually till end of Expected to grow by 6% annually till end of decadedecade

Why is IT outsourcing Why is IT outsourcing growing?growing?

IT still relatively newIT still relatively new New applications discovered everydayNew applications discovered everyday Implementation costs keep going downImplementation costs keep going down Technological innovations breaking Technological innovations breaking

down barriersdown barriers

Bandwidth Bandwidth Global Infrastructure stabilityGlobal Infrastructure stability

Predictions 10 Years AgoPredictions 10 Years Ago Growth not expectedGrowth not expected IT thought too volatile to trust to othersIT thought too volatile to trust to others Importance not emphasizedImportance not emphasized

Not integrated into businessNot integrated into business Potential limited due to technologyPotential limited due to technology Education not thought to be presentEducation not thought to be present

Global education lackingGlobal education lacking

Current Trends Current Trends Save moneySave money

Relocate to where costs are lowerRelocate to where costs are lower Integrate education as much as Integrate education as much as

possiblepossible Political effects due to job marketPolitical effects due to job market AutomationAutomation Security concernsSecurity concerns

Future PredictionsFuture Predictions

Continue to grow until the end of the Continue to grow until the end of the decadedecade Predicted of peak thenPredicted of peak then Growth will still continue, but not at the Growth will still continue, but not at the

current ratecurrent rate

Slow downSlow down IT will be incorporated pretty well in almost IT will be incorporated pretty well in almost

every aspect of business by thenevery aspect of business by then Job/economical equilibrium will be reached Job/economical equilibrium will be reached

Global EffectGlobal Effect Biggest player is AsiaBiggest player is Asia

IndiaIndia PhilippinesPhilippines New comer DubaiNew comer Dubai

OthersOthers Ireland Ireland IsraelIsrael CanadaCanada South AfricaSouth Africa

Biggest by far is IndiaBiggest by far is India Growing rapidlyGrowing rapidly 8% of GDP8% of GDP Political reformPolitical reform Educational reform Educational reform

Starts in elementary schoolStarts in elementary school Highly based on EnglishHighly based on English Abundance of educated labor capitalAbundance of educated labor capital

Global EffectGlobal Effect

Infrastructure planned around ITInfrastructure planned around IT Cities wiredCities wired High speed lines coming in on the eastern coastHigh speed lines coming in on the eastern coast Flawless integration into city planningFlawless integration into city planning Government control helps planning to benefit economyGovernment control helps planning to benefit economy

Skilled laborSkilled labor Large supplyLarge supply Highly educatedHighly educated Very competitive keeps prices lowVery competitive keeps prices low CriticizedCriticized

Low class programmersLow class programmers Creativity limitedCreativity limited Great for codingGreat for coding

Top five IT firms in Asia all in IndiaTop five IT firms in Asia all in India

National EffectNational Effect

Major panicMajor panic Loosing jobsLoosing jobs

Yes loosing jobs, but because industry Yes loosing jobs, but because industry growing so rapidlygrowing so rapidly

New jobs created dailyNew jobs created daily Job still stays within bordersJob still stays within borders

National EffectNational Effect

Education ramping upEducation ramping up IT education High SchoolIT education High School

CISCO certificationCISCO certification MCSE certificationMCSE certification Still lagging behindStill lagging behind

Political tusslingPolitical tussling IT not affected that muchIT not affected that much

Nature of business no physical exchangeNature of business no physical exchange Trade of information and intellectual capitalTrade of information and intellectual capital

QuestionsQuestions