Asia Pacific

India - Bangalore, Pune-Maharashtra, Bhubaneswar, Chandigarh, Chennai, Gurgaon,

Hyderabad, Jaipur, Mangalore, Mumbai, Mysore, New Delhi, Thiruvananthapuram,[22] Australia
- Melbourne, Sydney and China - Beijing, Shanghai

Further information: Infosys China

Hong Kong - Hong Kong, Japan - Tokyo, Mauritius - Mauritius, New Zealand - Wellington,
UAE - Sharjah, Philippines - Taguig City, Fiji Island - Suva and Thailand - Bangkok

[edit] North America

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[edit] Europe

Czech Republic - Brno, Belgium - Brussels, Denmark - Copenhagen, Finland - Helsinki,

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The Netherlands - Utrecht, Spain - Madrid, Burgos, Sweden - Stockholm, Switzerland -
Zürich, Geneva and UK - Canary Wharf, London

[edit] South America

Brazil - Belo Horizonte

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angalore: The hard- 1   2  Next>
pressed CEOs are
devoting more attention The evidence from LSE
to outsourcing, because a Outsourcing Unit
considerable amount of research shows clearly
most large organizations' that outsourcing --
cost base is already with properly planned,
outsourcing service resourced and managed
providers and this -- can deliver significant
amount is rising at a competitive advantage to
rapid pace. At the same companies and
time, getting large-scale organizations in all
outsourcing wrong can sectors. But only when
seriously damage the the CEO plays a key role
business. From now on, -- taking central strategic
outsourcing is part of any decisions, creating vital
future strategy. From capabilities, putting in
past experience, the place integrated
announcement of a management processes
large-scale outsourcing and applying effective
deal regularly has a monitoring and
positive effect on share evaluating mechanisms.
price that can last
between three and ten The Outsourcing Unit's
months. The opposite research points to five
can occur if the market main reasons why
perceives outsourcing to outsourcing must now
be an inadequate move up the CEO
measure, given the scale agenda. Let us look at
of difficulties involved, these issues in more
where the deal seems to detail.
be flawed or quickly
contrived or where the Reason 1: Outsourcing
CEO and organizations impacts on market value:
ultimately fail to deliver Share price is a
the financial results fundamental barometer
stated or implied in the of corporate
initial announcement. performance. Histories
have identified a
significant correlation
between firms
outsourcing their IT
infrastructure or back
offices and a positive
stock market response.
Investors consider
movement toward
outsourcing as an
important and generally
favorable variable when
assessing a firm's worth.
The danger for the CEO is
being swayed by short-
term share price
concerns and signing a
large, long-term deal in
order to try to shift the
share price substantially
upwards or perhaps to
buy time rather than
focusing on the
fundamental business
logic of the outsourcing
deal. Long-term
outsourcing contracts
signed for short-term
reasons invariably bring
about major
disappointments for
CEOs and their
organizations.

Reason 2: Outsourcing is
pervasive and growing:
Outsourcing makes up a
substantial and rapidly
increasing proportion of
expenditure in
corporations and
government agencies
alike. Organizations are
choosing to outsource
more and more and for a
variety of reasons: to get
to market faster, to cut
internal costs, or to
leverage he increasing
capabilities of external
services providers. CEOs
need to put such large
spending on to a much
more strategic footing.

Reason 3: Outsourcing
can damage corporate
health: The outsourcing
highway is under attack
with casualties. This can
run into massive
problems, suffering from
slow organizational
learning, and working in
a reactive rather than an
anticipatory mode.

21st century example can

be: In 2000, UK retailer
Sainsbury?s signed a 7-
year $3.25 billion deal
with Accenture to
outsource its IT
operations. By late 2004,
the deal had been
renegotiated twice, and
Sainsbury's had
announced a 2004/5
write-off of $ 254 million
of IT assets, and a further
$218 million of
automated depot and
supply chain IT. The way
forward was to reduce
costs and simplify
systems.

In 2004, JP Morgan and

 Chase scrapped its $5
billion contract with IBM
two years into a 7-year
deal, concluding that
much of the work could
be better handled in-
house. 5

The CEO's must have an

involvement because in
outsourcing, strategic risk
mitigation is
fundamental.
Furthermore, pursuing an
operational, cost-
reducing outsourcing
strategy can drive costs
down but often at the
expense of other
expected benefits.
Strategic and even
operational inflexibilities
can result. as the
examples above show,
strategic decisions to
merge, acquire, or enter
new markets can incur
substantial unforeseen
damage, delays and
costs, if existing
outsourcing
arrangements need to be
refocused.

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