Australia embraces Legal Process Outsourcing (LPO) – Another BPO Fad or BPO Phenomenon?
Australian organisations can pay $150 – $200 per hour for a paralegal but by outsourcing this work they can reduce the cost by 50% by hiring fully qualified lawyers in India and the Philippines, where there are currently over 5,000 professionals in the LPO industry. This trend is being driven more by the recent recession and the need to streamline business costs. It is expected there will be 18,000 professionals in the LPO industry by 2015.
With current technologies, security and access to information and documents can be easily controlled and organisations can have all the security they need. Now organisations can manage any down side and risk. As Australian companies see the benefits and manage the risks, we can only expect this trend to continue.
So what is really happening in the BPO industry? Yes, labour is being sourced from low-cost skilled labour pools, such as in India and Philippines, but this is purely the commercial aspect and what makes financial sense in the current market conditions. Ultimately however, it creates a dynamic global workforce, with the market forces distributing and balancing wealth and prices across international borders and according to business value.
We can expect to see BPO driven by cost reduction but also by other factors such as specialist expertise. Done in the right way, BPO makes organisations more efficient, skilled and competitive as well as reducing costs. The latest offshoot in the legal industry, LPO is just a sign of more to come in the BPO industry.
Haymish visit to our studio in India
From left, TJ (graphic designer), Sunil (MD), Haymish, Ketan (developer), Karan (developer), Vineet (SEO), Sandy (developer)
Last week operations manager Mr. Haymish Kharag from one of our client in UK visited our office in India to meet their development team. He was on his holidays to India and he decided to meet their team before he goes to his first holiday destination. It was long journey thats why he looks tired in the pictures. He was hardly able to keep his eyes opened 
He liked our setup and delighted to meet the team that is working for his company. They have a team of 5 IT professionals including one graphic designer, one seo exec. and 3 developers.
Offshore IT – Quick Fling or Long Term Marriage?
With India’s IT economy booming, everything is not as rosy as it seems. Attrition is becoming the big problem for IT companies all across India with employees ready to jump ship at any time. Of course, India is churning out IT talent like there’s no tomorrow, so hiring a replacement is not a big issue. There is however a hidden cost in training new recruits and the time it takes for new recruits to learn the business, projects and gel with the existing team. Read more…
India – No. 1 for Cyber Security?
Is India the safest place in terms of cyber security? Difficult question to answer as there are many factors at play here. However, the stats certainly seem to show India has the lowest number of cyber attacks per PC.
Atlanta based security vendor, SecureWorks recently conducted a study showing India being the safest digital country with only 52 cyber attacks per 1000 PCs compared with 1600 cyber attacks per 1000 PCs in USA.
The Hidden Costs of IT Offshoring
Is IT offshoring guaranteed to save your business money?
After spending over 5 years working with offshore IT freelancers and companies, I’d say the clear answer is no. There are no guarantees and can actually cost you money. However, if done correctly to minimise the risks, there are definitely big savings that can be achieved. Identifying the hidden costs before moving your IT offshore is well worth the time spent and significantly reduces the risk going forward. Some important hidden costs include…
- Cost of Vendor Partnership
- Cost of Transition
- Cost of Layoffs
- Cultural Cost
- Cost of Bridging Processes
- Cost of Managing an Offshore Contract
Outsource or keep your offshore IT team in-house?
With offshore IT rates presenting a significant opportunity for saving money, integrating an offshore team into your business is a key opportunity. When moving your IT offshore, should you outsource your IT projects to a freelancer, Partner Company or hire your own offshore IT team? The simple answer is that it depends on what your business is trying to achieve.
There are a number of options; firstly you can use a freelancer, great for one-off projects without any long term commitments. The second option is to work with an outsourcing partner company which can handle all your projects on your behalf. This has been the typical choice for a long time; however it has had its own problems too. The third option is to set up your own offshore workforce, which gives you much better control and management of your IT unlike the previous options.
UK government renegotiating outsourcing deals with India
In their effort to cut spendings UK government is ready to re-negotiate the outsourcing deals done with Indian IT companies. Many of government projects are outsourced to India and India has been favourite outsourcing destination for UK IT companies.
In a review country’s treasury department had last year identified the potential of around $10.6 billion in annual savings which will surely effect many Indian companies.
India has many advantages as IT outsource destination for UK and world including experienced IT skills, better command over English language and time zone.
Earlier TCS had won $400 million contract with British government, But under new government they may need to re-negotiate this deal.
Anyway it will be interested to see how it effects Indian IT companies.
Personally I think there will be increased private sector outsourcing to India in following few years.
Welcome to Virtual IT Studio Blog
Its our pleasure to setup blog for Virtual IT Studio. This blog will be used to update and discuss about Off-shore outsourcing opportunities, benefits and latest news.
With Virtual IT Studio you can make your dedicated off-shore team of employees working in India at our fully furnished and managed Studio.
