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Given this uncertainty and chaos worldwide & Obama's new tax laws, still it is a good time for companies to look at outsourcing as a means to save money, propel new business ventures, and improve efficiencies. It is also a good time for companies to review, rationalize, and evolve their outsourcing programs. In light of this, the top three outsourcing initiatives for 2009 include:

1. Reviewing Deal Structures

Most current outsourcing deals and models are outdated & insffective because they are people-based and not demand-based.Companies have a need for resources to do the work that is required;they negotiate a rate with a vendor;and determine contract durations. It is easy to understand why a people-based model is being used today, since outsourcing (especially Indian outsourcing) grew out of the Y2K era.

Demand-based contracts and models are revolutionary and will drive unbelievable results if properly implemented, executed, and governed. IT organizations will become better-aligned with their business partners and CIOs will have much more flexibility in how they allocate and spend their funding.

2. Portfolio Rationalization

Portfolio rationalization has been one of the biggest trends in the application outsourcing market over the past two to three years. The industry has matured to a point where they can review their portfoilo of outsourcing partners and set themselves up with better mixes of companies,countries and models. . This is not an easy task, since every company is different and there is no cookie-cutter approach to finding the right mix of outsourcing partners.

3. Cost-Cutting

The combination of hard economic times and the maturity of the outsourcing industry will force and enable CIOs to find new ways of cost-cutting. It is important to realize that there is no silver bullet on cost-cutting and it is equally important to understand that the biggest levers for cost-cutting are not the rates themselves.

How can CIOs cut costs with their outsourcing initiatives?

Offshore to Onsite Ratios—this is by far the biggest lever in reducing the total cost of ownership of an application or suite of applications.

Time-to-Market—if products and applications can be delivered faster, companies will reap the benefits sooner. To do this, IT organizations must work with their outsourcing partners on better ways to execute projects, leverage reusable components and foster knowledge-sharing

Quality Improvements—if products and applications can be delivered with fewer bugs and defects there will be less time and money spent on re-works. IT organizations must leverage the knowledge, experience, tools and processes of outsourcing companies.

In 2009 companies will need to find better ways to leverage outsourcing to keep costs down and support business initiatives.To optimize their outsourcing partnerships, companies must review their outsourcing deal structures and models, rationalize their outsourcing portfolios, and find new and better ways to control and decrease costs.

Put your perspectives behind this................

 Top Comment : Venkatesh Rao   | 05 04 2009 14:17:17 +0000
Yes Sumitra one has to agree with you Outsourcing is a major part for an organization...and this will happen with better partnerships and with better portfolio management......
 
5 comments on "Top Three Outsourcing Initiatives for 2009"
  Commented by  aditya ghare, Multimedia Designer & Developer, Final Edit    | 05 08 2009 16:44:27 +0000
Rating : +1 
Early appreciation will ensure sooner benefits and meaningfull partnerships.
  Commented by  BEENA AGARWAL, Head/VP/GM-Corporate Planning/Strategy, ANADI HI TECH AGRO PVT LTD    | 05 08 2009 12:40:35 +0000
Rating : +3 
Nice article , I agree with your suggetions as all three are major solutions for current financial situation.
  Commented by  Satyajit Roy, Webmaster, Pyramid IT Consulting    | 05 08 2009 12:26:18 +0000
Rating : +2 
I'm fell my bit relief from the new outsourcing mantra.In a longer run it helps to build a better outsourced neiche market. This initiative help small company & independent service provider to gain good projects & earn good money in continuously. 
  Commented by  Z SHAIKH, Network Admin/System Admin, COAL    | 05 08 2009 12:00:20 +0000
Rating : +1 
yes it is true for some time if some one lunch this methord so he can save some time with man power 
  Commented by  Venkatesh Rao, Asst. Manager/Manager -(NonTechnical), Genpact    | 05 04 2009 14:17:17 +0000
Rating : +2 
Yes Sumitra one has to agree with you Outsourcing is a major part for an organization...and this will happen with better partnerships and with better portfolio management......
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