source:www.crmbuyer.com

Outsourcing remains one of the premium businesses all over the world. It is gaining in reliability and customer satisfaction. It is required for the corporate buyers of outsourcing services to built innovation, flexibility and relationship management into their working interaction with providers. These things are desired to be dealt as a part of governance although they are not mentioned in the contract.

The latest survey of 300 corporate buyers from advisory firm Alsbridge points out that quality remains a big concern for companies using offshore service providers. The research also found that buyers continue to experience “numerous challenges” with IT providers and are unable to realize all the potential benefits associated with IT Outsourcing (ITO).

It is found that while trying to achieve the goal of cost reduction and being more cost effective, the companies mostly face difficulty in dealing with other factors, such as innovation, speed and flexibility.

More than 40 percent of the poll participants represent organizations with annual revenues of more than US$1 billion and more than 1,000 employees. Approximately 80 percent of the respondents indicate they are currently involved in IT outsourcing.

According to the survey results, it was found that the level of satisfaction was not up to the mark; it was somewhat moderate. the areas in which most of the buyers have been noticed as interested in quality issues, missed deadlines and cost overruns.
It has been very well noticed that disatisfacion effects badly both the buyers and the suppliers. It greatly hampers the profitability of the providers and the the business operations of the buyer.

Best practices in outsourcing strategies require monitoring and measuring satisfaction levels against qualities of the contract and relationship. Usually an outside firm is required to provide an objective evaluation of the situation.

The survey indicates that the buyers have increased their portfolio of IT services operations in various global locations, the importance of managing risk and the relationship with the service provider has increased significantly. The issue of flexibility in relationships with the IT providers was cited among the top factors that contribute to the success of an ITO engagement.

Source:www.forbes.com

Wipro Technologies, the global services arm of Indian outsourcing company Wipro Ltd., plans to open a software development center in Atlanta, the company said.

Wipro (nyse: WIT - news - people ) will initially employ 200 people and anticipates about 500 positions within three years, mostly graduates from state universities, the company said in a statement.

“The center is part of Wipro’s strategy to build global delivery capabilities and will significantly increase the company’s presence and base of local hires in the United States,” the Monday statement said.

Western companies routinely shift information technology jobs to countries such as India, where wages are low and skilled workers are plentiful.

The practice has benefited Indian software companies, some of which are now setting up centers outside India to compete with IBM Corp. (nyse: IBM - news - people ), Accenture (nyse: ACN - news - people ) and other global computer services companies.

“The work we’re doing requires more and more knowledge of the customers’ businesses, and you want local people to do that,” said P.R Chandrasekar, President, Wipro Technologies Ltd. “The Atlanta center is an investment that will help Wipro’s existing customers as well as help address new business opportunities.”

Wipro already operates software development centers in Brazil, Eastern and Western Europe, China, Mexico and Canada. The company said it chose Atlanta because of its proximity to key universities.

The University System of Georgia has already provided Wipro with “a comprehensive work force development program,” Wipro’s statement quoted chancellor Erroll B. Davis Jr. as saying.

“We tapped into the resources of Georgia’s 35 public colleges and universities to find the best solution for this company,” said Davis.

Also, Kennesaw State University and Southern Polytechnic State University are collaborating with Wipro to create an innovative curriculum development and delivery system, he said.

Earlier this month, Wipro Ltd. said it would buy Infocrossing Inc. (nasdaq: IFOX - news - people ) for about $600 million. The New Jersey-based company provides outsourcing services to mid-sized companies in the United States.