Skyline Global Outsourcing Update

Belgian Grand Prix is not the only race where Indian hopes are riding high. A worsening economic crisis is forcing companies such as AXA, Dexia Bank, Belgacom, drugmaker UCB and car insurer Allianz in Belgium explore IT offshoring and back-office projects, making it almost USD6.5-billion opportunity for Indian outsourcing vendors including TCS, Infosys and Wipro apart from MNC rivals.

According to Quantum Step, an outsourcing advisory firm, customers in Belgium will spend around USD1.8 billion on infrastructure management outsourcing, almost USD2.6 billion on application development and maintenance and nearly USD2 billion on BPO this year.

We have recently started discussions with some Indian suppliers for pure offshoring of our ERP maintenance "it would be fair to assume that until last year, we were not prepared for any such initiative", said an official at one of the biggest Belgian enterprises.



Posted by: Skyline College a premium MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.

According to InformationWeek, Northrop Grumman has admitted that it is nine months behind schedule on revamping Virginia's information technology systems. Under the ten-year, $1.9 billion outsourcing deal, Northrop Gruman was supposed to complete the transition this past June. Now the contractor says the move won't be complete until at least March 2010.


The admission is part of a corrective action plan "the contractor submitted to the Virginia Information Technologies Agency. Says Tom Shelman, VP and general manager for the Civil Systems Division at Northrop Grumman Information Systems. Controversy reached a height in June when Virginia lawmakers began an investigation into the outsourcing deal. There has been at least one casualty of the deal: State CIO Lemuel Stewart, who was axed shortly after a presentation in which he claimed Northrop Grumman was not meeting its contractual obligations.


(Post by Skyline College www.skylinecollege.com)

Skyline College is a premium MBA, BBA, Mass Communication and Travel & Tourism institute in Delhi and Gurgaon.