Dhruv Patel Bill Hays Cindy Steinmetz Will Isom Lindsey Bryan

What is IT Outsourcing? “… is using outside vendor to create, maintain, or engineer IT architectures and systems …” Originally started as a big trend for major companies to hire out side firms to handle and mange their IT departments Originally started as a big trend for major companies to hire out side firms to handle and mange their IT departments Why kept in house Why kept in house Capital availability Capital availability Engineering know how Engineering know how Tailored to fit Tailored to fit Why outsourced Why outsourced Cost Cost Know how increased in the market place Know how increased in the market place Lot of success with mass production Lot of success with mass production } Almost Like Natural Evolution

What is IT Outsourcing Currently the big deal is “Offshore” outsourcing Currently the big deal is “Offshore” outsourcing IT jobs moving outside the country IT jobs moving outside the country Using firms outside the country for IT needs Using firms outside the country for IT needs Companies opening their own IT departments in different countries to handle IT needs Companies opening their own IT departments in different countries to handle IT needs “Offshore” and “Outsourcing” have become synonymous “Offshore” and “Outsourcing” have become synonymous Involves all aspects of IT not just some Involves all aspects of IT not just some Development Development Implementation Implementation Maintenance/monitoring Maintenance/monitoring Housing Housing Physical hardware being there Physical hardware being there No remote maintenance (dialing in) No remote maintenance (dialing in)

What are the jobs involved? Mostly all aspects of IT Mostly all aspects of IT Due to nature of jobs Due to nature of jobs Some limitations Some limitations Hardware troubleshooting Hardware troubleshooting Solution housing hardware offshore as well Solution housing hardware offshore as well Bandwidth increases breaking limitations Bandwidth increases breaking limitations

How big is the phenomenon? IT is big money IT is big money Lot of money put into IT Lot of money put into IT Latest way to improve business productivity Latest way to improve business productivity In most cases cost vs. benefit ratio high In most cases cost vs. benefit ratio high Now think about cutting costs Now think about cutting costs Cost cut 15%-60% Cost cut 15%-60% No loss of quality No loss of quality Put both together big deal from business point of view Put both together big deal from business point of view Expected to grow by 6% annually till end of decade Expected to grow by 6% annually till end of decade

Why is IT outsourcing growing? IT still relatively new IT still relatively new New applications discovered everyday New applications discovered everyday Implementation costs keep going down Implementation costs keep going down Technological innovations breaking down barriers Technological innovations breaking down barriers Bandwidth Bandwidth Global Infrastructure stability Global Infrastructure stability

Predictions 10 Years Ago Growth not expected Growth not expected IT thought too volatile to trust to others IT thought too volatile to trust to others Importance not emphasized Importance not emphasized  Not integrated into business Potential limited due to technology Potential limited due to technology Education not thought to be present Education not thought to be present  Global education lacking

Current Trends Save money Save money Relocate to where costs are lower Relocate to where costs are lower Integrate education as much as possible Integrate education as much as possible Political effects due to job market Political effects due to job market Automation Automation Security concerns Security concerns

Future Predictions Continue to grow until the end of the decade Continue to grow until the end of the decade Predicted of peak then Predicted of peak then Growth will still continue, but not at the current rate Growth will still continue, but not at the current rate Slow down Slow down IT will be incorporated pretty well in almost every aspect of business by then IT will be incorporated pretty well in almost every aspect of business by then Job/economical equilibrium will be reached Job/economical equilibrium will be reached

Global Effect Biggest player is Asia Biggest player is Asia India India Philippines Philippines New comer Dubai New comer Dubai Others Others Ireland Ireland Israel Israel Canada Canada South Africa South Africa Biggest by far is India Biggest by far is India Growing rapidly Growing rapidly 8% of GDP 8% of GDP Political reform Political reform Educational reform Educational reform  Starts in elementary school  Highly based on English  Abundance of educated labor capital

Global Effect Infrastructure planned around IT Infrastructure planned around IT Cities wired Cities wired High speed lines coming in on the eastern coast High speed lines coming in on the eastern coast Flawless integration into city planning Flawless integration into city planning Government control helps planning to benefit economy Government control helps planning to benefit economy Skilled labor Skilled labor Large supply Large supply Highly educated Highly educated Very competitive keeps prices low Very competitive keeps prices low Criticized Criticized Low class programmers Low class programmers Creativity limited Creativity limited Great for coding Great for coding Top five IT firms in Asia all in India Top five IT firms in Asia all in India

National Effect Major panic Major panic Loosing jobs Loosing jobs Yes loosing jobs, but because industry growing so rapidly Yes loosing jobs, but because industry growing so rapidly New jobs created daily New jobs created daily Job still stays within borders Job still stays within borders

National Effect Education ramping up Education ramping up IT education High School IT education High School CISCO certification CISCO certification MCSE certification MCSE certification Still lagging behind Still lagging behind Political tussling Political tussling IT not affected that much IT not affected that much Nature of business no physical exchange Nature of business no physical exchange Trade of information and intellectual capital Trade of information and intellectual capital

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