Hope for outsourcing in 2010

Infosys Technologies expects outsourcing demand to revive in early 2010, but the current business environment is challenging, as a slowing world economy crimped spending, said its CFO, V. Balakrishnan, reports Reuters.

India's second-largest software services exporter is looking to spend between $200 million to $300 million to acquire firms and is sharpening its focus on newer markets such as Australia, India, and China to boost growth, Balakrishnan said.

Shares in India'a top outsourcers such as Tata Consultancy, Infosys and Wipro have soared in recent weeks on hopes of a revival in sluggish business momentum later this year, but Balakrishnan was cautious about such a possibility.

Desperate times call for desperate measures - that's how outsourcing consultancy EquaTerra introduces the concept of "speed sourcing" on its Web site, writes Computerworld.

As companies search for new ways to cut costs in challenging times, many are looking to third party IT services providers to trim expenses. Some are moving at a measured pace through the traditional process of selecting an outsourcer and negotiating a contract.

But others, EquaTerra says, are jumpstarting their potential savings by "speed sourcing" - a new approach for choosing a service provider and sealing a deal in three months or less.

Hynix Semiconductor, the world's second-largest producer of computer memory chips, said it will set up a back-end joint venture (JV) with China's Wuxi Industrial Development Group Company, sources reported, according to China Knowledge Online.

Under the agreement, the South Korean company will sell packaging and testing equipment to the JV to raise $300 million. The JV will be formed within this year, and the asset sale is also expected to be completed during that period.

Upon the establishment of the JV, the portion of Hynix's outsourcing of back-end manufacturing will increase up to 50% from 30%, which will help the company reduce manufacturing and transportation costs.