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Dhruv Patel Bill Hays Cindy Steinmetz Will Isom Lindsey Bryan What is IT Outsourcing? “… is using outside vendor to create, maintain, or engineer IT architectures and systems …” Originally started as a big trend for major companies to hire out side firms to handle and mange their IT departments Why kept in house Capital availability Engineering know how Tailored to fit Why outsourced Cost Know how increased in the market place Lot of success with mass production Almost Like Natural Evolution What is IT Outsourcing Currently the big deal is “Offshore” outsourcing IT jobs moving outside the country Using firms outside the country for IT needs Companies opening their own IT departments in different countries to handle IT needs “Offshore” and “Outsourcing” have become synonymous Involves all aspects of IT not just some Development Implementation Maintenance/monitoring Housing Physical hardware being there No remote maintenance (dialing in) What are the jobs involved? Mostly all aspects of IT Due to nature of jobs Some limitations Hardware troubleshooting Solution housing hardware offshore as well Bandwidth increases breaking limitations How big is the phenomenon? IT is big money Now think about cutting costs Lot of money put into IT Latest way to improve business productivity In most cases cost vs. benefit ratio high Cost cut 15%-60% No loss of quality Put both together big deal from business point of view Expected to grow by 6% annually till end of decade Why is IT outsourcing growing? IT still relatively new New applications discovered everyday Implementation costs keep going down Technological innovations breaking down barriers Bandwidth Global Infrastructure stability Predictions 10 Years Ago Growth not expected IT thought too volatile to trust to others Importance not emphasized Not integrated into business Potential limited due to technology Education not thought to be present Global education lacking Current Trends Save money Relocate to where costs are lower Integrate education as much as possible Political effects due to job market Automation Security concerns Future Predictions Continue to grow until the end of the decade Predicted of peak then Growth will still continue, but not at the current rate Slow down IT will be incorporated pretty well in almost every aspect of business by then Job/economical equilibrium will be reached Global Effect Biggest player is Asia Others India Philippines New comer Dubai Ireland Israel Canada South Africa Biggest by far is India Growing rapidly 8% of GDP Political reform Educational reform Starts in elementary school Highly based on English Abundance of educated labor capital Global Effect Infrastructure planned around IT Skilled labor Cities wired High speed lines coming in on the eastern coast Flawless integration into city planning Government control helps planning to benefit economy Large supply Highly educated Very competitive keeps prices low Criticized Low class programmers Creativity limited Great for coding Top five IT firms in Asia all in India National Effect Major panic Loosing jobs Yes loosing jobs, but because industry growing so rapidly New jobs created daily Job still stays within borders National Effect Education ramping up IT education High School CISCO certification MCSE certification Still lagging behind Political tussling IT not affected that much Nature of business no physical exchange Trade of information and intellectual capital Questions