Q: - Does the recent collapse of marquee Mega-Deals send a message that in-sourcing strategies offer companies a comparable cost advantage?

BT: The market has clearly shifted. Outsourcing is now in firm competition with IN-sourced solutions where the clients directly access low-cost, high-value labor in Company-owned Offshore Skill Centers. This trend will put providers in a position where they need to deliver unique program management and risk mitigation experience to be an effective and viable solution.

Q: - What countries will be the dominant offshore players to drive the new economy over the next 5-10 years?

BT: While the India wave has not even begun to crest, a number of interesting countries are on the horizon and riding in as the next wave of providers. The widening set of country players in this game is driven by a classic cost, distribution and customer intimacy problem that will not be solved with an India only solution. For the European zone we like the Czech Republic, Slovakia, Hungary and Poland; and within the Asia zone there are now multiple options that could be lower cost than India. Each client needs a balanced solution that could involve a number of countries.

Q: - How are offshoring trends changing the mix of business operating costs and effecting the US economy?

TL: There are two drivers, labor and reinvestment. Labor costs are slowly being pegged to a global cost of delivery that relies on right-cost to right-time dynamics. Second, the ubiquitous nature of solution options are allowing companies across the USA to take advantage of “right cost” labor. This in turn frees up capital for further reinvestment in the next big idea in the US or reduction of another line of business operating costs.

Q: - Why do corporations need value-added sourcing advisors?

BT: In order to find the right outsourcing solution at the right cost and terms, corporations need the advice from external independent advisors. Yesterdays deal may not work for your company. Dealing with global shifts in operating models and multifaceted issues requires un-biased advice on solution, configuration and above all country location. Providers have a tremendous range of capabilities and clients often need an intermediary to help focus the providers energy on the right problem to support their strategic intent. Using the right sourcing consultant ensures the client gets the right deal at the right price.