Friday, June 08, 2007

The latest on what big companies are Outsourcing and why?

All companies, big or small, that are dabbling in the field of outsourcing, claim the lack of skilled workers in the US to be the reason for taking their work offshore. That may be one of the causative factors, but cost cutting rules the roost! For instance, off shoring to Vietnam cannot be justified by this declaration of seeking for a “highly skilled workforce”. The motive is of course to save money by employing the efficiency of outsourcing.

Here is the latest in the world of outsourcing…what are the big names in business doing? What is their next move? Where is the next manufacturing unit coming up? Read below to find the answers!

Intel is opening a $300 Million semiconductor facility in Vietnam, which will employ a labor force of 1,200 people. This move is being touted as a big step towards a long-term involvement with Vietnam. This plant, already under construction in Ho Chi Minh City, marks only the first phase of Intel's investment in Vietnam. Intel has acquired an investment license worth $605 million, and their operations in Vietnam are bound to grow. The infrastructure, young work force, and a growing education system have been confirmed as the driving factors for Vietnam to be the destination of choice for Intel’s sixth testing facility in Asia.

Next, General Motors is planning on outsourcing $15 billion in IT work. This is being done to cut costs and restructure operations. General Motors has however not revealed how much they will be saving through the outsourcing of information technology work. In fact, General Motors maintain that their outsourcing project aims to gain increased efficiency, and they are not at all driven by the lowest cost or the payment terms.

JP Morgan is all set to send a third of skilled financial jobs to India within 2 years. By the end of 2007 more than 9,000 positions will be given to India. JP Morgan intends to process most of its foreign exchange trades in the Indian cities of Mumbai and Bangalore, and also transfer the processing of credit derivatives contracts. By the end of 2007, as many as 9000 graduates will have been hired! Hence, it’s just not just the manufacturing and low skilled jobs that are being outsourced, but skilled financial positions are also moving offshore. The other financial companies will quickly follow suit.

With this we bring you abreast with the latest goings-on in the outsourcing industry. Keep reading for more information!