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 »


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.

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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.

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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.

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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 »


Beyond India – Optimizing the Locations of Offshore Operations

November 23, 2011

As the volume and maturity of offshore outsourcing continues to grow, companies are developing sophisticated location strategies to balance the cost and efficiency of leading offshore locations against their economic, political, and operational risks.  During a recent analysis of global delivery center locations, my firm, Red Bridge Strategy, compared locations based on economic factors (i.e., GDP, prices, wages, and growth rates) and differences in the availability of business, technology, language, and management skills.  We then evaluated each location’s strategic suitability within our client’s optimal portfolio of offshore locations. Read the rest of this entry »


Matthew Sullivan to Speak at Legal Process Outsourcing Conference

December 20, 2010

The International Quality and Productivity Center (IQPC) is sponsoring a Legal Process Outsourcing Conference on February 14 – 16, 2011 in New York to help attendees examine legal outsourcing strategies and decide what fits best for their companies. On Monday, February 14th, Matthew Sullivan will lead a workshop entitled:  Gaining the Right Information and Tools to Make an Informed Legal Outsourcing Decision Read the rest of this entry »