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Officials in states like Pennsylvania, which has outsourced state government IT infrastructure since the late 1990s, say these strategies can cut operational costs and free up funds for public-policy priorities.
1. Assess the Need
Governments should take a good look at their current situation before deciding what to share or outsource
2. Measure Total Cost of Ownership
While considering how well an IT organization handles technology functions in-house, measure the total cost of ownership for operating hardware, software and services. These costs sometimes aren’t closely tracked by government agencies, but they’re critical to identifying what advantages would come from an outsourced solution.
3. Carefully Craft the Contract
In most cases, the relationship between a service provider and the service user comes down to a service-level agreement (SLA). It’s an all-important document that formally defines the service and how it will be delivered. If SLAs are not carefully crafted, problems could trip up an organization.
4. Get Everyone Onboard
When governments decide to outsource or share resources, it can be tough to get departments to go along.
5. Win Approval From the Top
In some cases, a CIO’s or vendor’s influence may not be enough to mediate a conflict or spur everyone’s agreement on outsourcing or sharing. A governor, mayor, agency director or other powerful public official may have to step in as the ultimate peacemaker.

Read this news in govtech.com

China Emerging role in Global Outsourcing this project in addition to initiatives such as tax breaks, financial support, subsidies and intellectual property rights protection from the government are some of the many schemes to expand the outsourcing industry and to ensure economic growth, industry restructuring and creation of job opportunities, especially for university graduates.

This is not to advocate that Russia should come back to five-year plans but simply to underline that consistent long-term vision is needed to promote a predictable and safe business environment. This has enabled China — both at the central and regional levels — to allocate the billions of dollars needed to build a strong economic basis and to attract foreign investors and foster international collaboration enabling companies to thrive.

Read more more comparation in outsourcing-russia.com

The top 20 of this list: India, China, Malaysia, Thailand, Indonesia, Egypt, Philippines, Chile, Jordan, Vietnam, Mexico

Highlights from this year’s GSLI:

• The Middle East and North Africa is emerging as a key offshoring region because of its large, well educated population and its proximity to Europe.
• Saharan Africa also showed strength.
• Countries in Latin America and the Caribbean continue to capitalize on their proximity to the United States as nearshore destinations.
  India, China and Malaysia continue to lead the index by a wide margin through a unique combination of high people skills, favorable business environment and low cost.
• The United States, as represented by the onshoring potential of smaller “tier II” cities such as San Antonio, rose to 14th in the rankings due to the financial benefits of a falling dollar.
• While the global financial crisis has slowed recent offshoring moves, the percentage of companies’ staff offshore may very well increase as a result of the crisis.

Read more about Kearney’s Global Services Location Index

Only two American cities make the magazine’s list of 31 worldwide considered to be well-positioned to profit from outsourcing. The other is Boise, Idaho.

Indianapolis is prominent in the life science industry and it is home to a large pool of local college graduates well-trained in information technology. Boise–in the far west–can draw upon a labor market flooded with skilled workers who are eager to find employment after being laid off.

Rising costs in the expected outsourcing locales such as India make it more cost effective for companies to contract with firms located in places like Indy and Boise.
Read this news of Stan Lehr in wibc.com

A recent study shows that while payroll outsourcing registered a growth of 50 per cent, HR outsourcing grew only at 12 per cent. Although Payroll outsourcing market pegged at $250 million is much smaller compared to HR outsourcing market at $1.3 billion.

Out of 104 multi-country, HRO deals signed as of December 2008 only 30 deals included Asia Pacific, but out of 78 multi country payroll deals, 58 were signed in the Asia-Pacific region. Realising the opportunity Indian players are now getting aggressive to acquire more deals. Such as Infosys, TCS and Caliber Point are relying on pay roll outsourcing to achieve faster growth in India.

Read more in profit.ndtv.com