Global Legal Author to Participate in 7th Pan-Mass Challenge

August 2, 2013

Tomorrow, August 3rd I will be riding the Pan Massachusetts Challenge (PMC) 84 mile route from Wellesley to Bourne.  The PMC benefits the Dana-Farber Cancer Institute, and this year I hope to raise more than $7,500 toward the overall PMC goal of $38 million.

Learn more about why this is important to me and how you can contribute here.

If you would prefer not to contribute using the internet, you can send me a check made out to “The Pan-Mass Challenge,” and I will forward your donation.  Please contact me for my address.

Thanks in advance for your support.

Matthew Sullivan

Matt Sullivan PMC Information & Donation


Immigration Bill Gives Competitive Advantage to American Firms

June 14, 2013

In a previous post, I outlined how America’s proposed new immigration regulations (Senate Immigration Reform Bill S. 744) restrict visa availability and increase costs for large employers.  In this post, I outline how “Outplacement” restrictions in the bill will strengthen U.S.-centric third party providers at the expense of India-centric third party providers, and will benefit captive providers as compared to either type of third party outsourcer. Read the rest of this entry »


Surviving the New Immigration Regulations: Recommendations for Offshore Outsourcing Providers and their Clients

May 22, 2013

The End of Visa Availability for Indian-Centric Providers

As a result of proposed immigration regulations that will restrict the availability of visas for their employees, offshore outsourcing providers that employ large numbers of foreign workers in the U.S. now face enormous challenges to their business model.  Critics have long blamed offshoring for contributing to America’s economic woes, and some providers have been accused of violating U.S. visa regulations.  Partially as a result, the current Senate Immigration Reform Bill (S. 744) restricts visa employment visa availability and increases costs for large employers.  The Bill provides that no more than 75% of employees can be H1-B or L visa holders in 2015, and restricts employers to 65% in 2016, and to no more than 50% thereafter. In addition, 2014 L-visa filing fees will be $5,000 for employers with between 30% and 50% of employees on H1-B and L visas, and $10,000 for employers with between 50% and 75% working under such visas. (Sec. 4304, 4305). Read the rest of this entry »


Myth #3: The cost savings from labor arbitrage in India will be lost in the very near future

March 25, 2013

A common critique of offshore outsourcing is that wage inflation in India is quickly shrinking the value of labor arbitrage.   However, this analysis is based on three myths:

This post exposes the flaws in Myth #3 and explains how outsourcing professionals can leverage the truth to improve decision making and negotiations.  We explained Myth #1 here, and Myth #2 here.    Read the rest of this entry »


Myth #2: Increased wages in India translate directly to increased costs for U.S. buyers of IT services

March 12, 2013

A common critique of offshore outsourcing is that wage inflation in India is quickly shrinking the value of labor arbitrage.   However, this analysis is based on three myths:

This post exposes the flaws in Myth #2 and explains how outsourcing professionals can leverage the truth to improve decision making and negotiations.  We explained Myth #1 here, and will explore Myth #3 in a future post.

Read the rest of this entry »


Myth #1: All Indian IT Wage Levels are Going Up at a Dramatic Pace

March 4, 2013

A common critique of offshore outsourcing is that wage inflation in India is quickly shrinking the value of labor arbitrage.   However, this analysis is based on three myths:

This post exposes the flaws in the first myth and explains how outsourcing professionals can leverage the truth to improve decision making and negotiations.  Future posts, will explore Myths #2 and #3.

Read the rest of this entry »


Three Myths about Wage Inflation in Indian IT Services

March 4, 2013

One can hardly mention global IT outsourcing these days without hearing references to “wage inflation” in India and the fast-shrinking value of labor arbitrage from offshore outsourcing. These dramatic, seemingly logical, arguments are used to support an analysis that predicts that cost savings will soon be too small for offshore outsourcing to be viable.  However, this deeply flawed analysis is based on three myths:

In future posts, we explain why each of these myths are false and how outsourcing professionals can leverage the truth to improve decision making and negotiations.

Analysis and Opinions by Matthew Sullivan and Cindy Carpenter.


Evaluating the Maturity of a Portfolio of Offshore Services Engagements

June 13, 2012

Thousands of U.S. companies now receive services from offshore vendors.  Many companies that began global outsourcing to reduce labor costs by augmenting staff now source project-based services from multiple vendors in multiple countries.  Many also have offshore captive (subsidiary) centers that provide competitive and/or complimentary services. As companies increase their usage of outsourcing providers, it becomes increasingly important to manage these portfolios of global services relationships in a deliberate, organized way, not just the engagements. One tool to help manage the global services portfolio is a periodic evaluation using three relationship aspects: (1) global services buyer management practices, (2) the individual buyer and provider relationships, and (3) provider service capabilities.

Read the rest of this entry »


True Global Outsourcing: It’s about Skills, Not Visas

April 25, 2012

Writing in Forbes, veteran Forrester analyst Stephanie Moore, recently wrote that “every offshore development team requires an onsite component, [and] that [the] onsite component could be provided by American citizens — who naturally have more contextual business understanding, thus satisfying one of clients’ most pressing needs today.” (True Global Outsourcing Should End The Visa Debate). Moore is right that American employees can and should staff more of the onsite roles in global IT outsourcing projects, but the reason they don’t is driven more by the difficulty of finding American employees who have the appropriate skills and interests than it is by costs. Read the rest of this entry »


Understanding Concentration Risk in Offshore Operations

February 10, 2012

Offshoring analyses routinely incorporate comprehensive risk evaluations of economic, political and other well-known risks, but often fail to consider how these intensify as offshore operations scale. This probability of magnifying other risks as operations become geographically clustered is called “Concentration Risk.”  The remainder of this post illustrates the concept of Concentration Risk by applying a simplified offshoring risk management architecture to the operations of a hypothetical U.S. company as it evolves through an offshoring lifecycle. Read the rest of this entry »