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Transformational Outsourcing

During the past few years, we have heard Genpact to handle finance and accounting
a lot of whining in the media about jobs, and a separate deal with
outsourcing and offshoring. Let's look Illinois-based Hewitt Associates to
for the opportunities in these handle administrative and HR programs.
irreversible trends (and ignore the But, it is not just about cost savings,
whiners!).By fully leveraging offshore it's about growth! Wachovia plans to
talent (a strategic view of global invest up to 40% of the $600 million to
sourcing) we can improve productivity, $1 billion in savings in core business
increase quality, and create American growth. Wachovia's Director of Corporate
jobs. Yes, I said "create America Development believes this is what is
jobs."An aggressive outsourcer in necessary to become a "great
Pasadena, California named IndyMac customer-relationship company."Eli Lilly
Bankcorp has risen from the twenty-second and other "big pharma" companies are
largest U.S. mortgage issuer to the facing unsustainable costs to develop new
number-nine position in only three years. drugs. Lilly now does 20% of its
According to IndyMac's CEO, they are more chemistry work in China for one-quarter
productive, more cost efficient, more of the U.S. cost. Lilly plans to expand
flexible, and provide better customer these efforts into Russia, China, India,
service than the competition because of and Brazil.Many new companies are using
IndyMac's outsourcing and offshoring outsourcing and offshoring from the
partners. India's Exlservice Holdings start. California-based Crimson
(with a staff of 5,000) handles over 30 Consulting Group (with only 14 full-time
of IndyMac's back-office processes, employees) is able to compete with the
including bill collection and the world's largest consulting firms
"welcome calls" that assist American (including McKensey and Bain) by
customers. IndyMac is also using New offshoring research. Crimson uses
York-based Cognizant Technology Solutions India-based Evalueserve, as well as
Corporation to develop next-generation independent experts from around the
software, which will increase world.Wise leaders (and consultants) are
productivity by as much as 20% by 2008. now asking for articulate outsourcing
All of this outsourcing and offshoring offshoring strategies. Are you familiar
has led to explosive growth. IndyMac has with the wide array of business services,
doubled its American workforce, in just software development, and call center
four years, to almost 6,000 resources that are currently
jobs.Charlotte-based Wachovia Corporation available?Dr. Mike Beitler is the author
has a $1.1 billion deal with India's of "Strategic Organizational Learning.




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