Companies must consider outsourcing objectives

There are several factors companies should consider before establishing an outsourcing programme in China, says David Dan, president of D Square Transformation Consulting in an article on Electronic Business.

According to Dan, companies should carefully consider their business objectives; the service capabilities sought from the provider; and the category of Chinese company best suited to the business' needs.

Other factors organisations should address before setting out to woo potential partners are: the size or scale required for the contract; the culture and management fit; location; and the referrals, records and r'esum'es of interested parties.

A new report from PricewaterhouseCoopers maintains the majority of senior executives think IT outsourcing delivers on the business benefits projected in their original plan, says CIO Weblog.

According to the article, 91% of respondents said they would outsource again regardless of past experiences, because outsourcing had become "such an essential business practice". The endorsement comes despite frequent disconnects between the expectations of the executives and those of their service providers, said PricewaterhouseCoopers.

Although IT services remain the most widely outsourced activity, 70% of respondents said they outsource one or more strategic activities, including the production or delivery of core products, sales and marketing, and research and development.

Asian outsourcing companies are looking to strengthen collaboration and launch joint initiatives that would promote the region's outsourcing capabilities, says AHN.

Reporting this week from the Philippines, AHN says Asian IT outsourcing providers will meet next month in Cebu City. The aim of this meeting is to improve knowledge-sharing and networking among investors and industry professionals in the hopes of establishing common performance measures and certification standards.

Delegates from technology firms are expected to tackle regional promotion efforts, including the advancement of innovation ecosystems, investment promotion and human capital development during the Cebu ICT 2007 International conference, says Bonifacio Belen, head of the organising firm.