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Transformational Outsourcing

During the past few years, we have heard aaccounting jobs, and a separate deal with
lot of whining in the media about outsourcingIllinois-based Hewitt Associates to handle
and offshoring. Let's look for theadministrative and HR programs. But, it is
opportunities in these irreversible trendsnot just about cost savings, it's about
(and ignore the whiners!).By fully leveraginggrowth! Wachovia plans to invest up to 40% of
offshore talent (a strategic view of globalthe $600 million to $1 billion in savings in
sourcing) we can improve productivity,core business growth. Wachovia's Director of
increase quality, and create American jobs.Corporate Development believes this is what
Yes, I said "create America jobs."Anis necessary to become a "great
aggressive outsourcer in Pasadena, Californiacustomer-relationship company."Eli Lilly and
named IndyMac Bankcorp has risen from theother "big pharma" companies are facing
twenty-second largest U.S. mortgage issuer tounsustainable costs to develop new drugs.
the number-nine position in only three years.Lilly now does 20% of its chemistry work in
According to IndyMac's CEO, they are moreChina for one-quarter of the U.S. cost. Lilly
productive, more cost efficient, moreplans to expand these efforts into Russia,
flexible, and provide better customer serviceChina, India, and Brazil.Many new companies
than the competition because of IndyMac'sare using outsourcing and offshoring from the
outsourcing and offshoring partners. India'sstart. California-based Crimson Consulting
Exlservice Holdings (with a staff of 5,000)Group (with only 14 full-time employees) is
handles over 30 of IndyMac's back-officeable to compete with the world's largest
processes, including bill collection and theconsulting firms (including McKensey and
"welcome calls" that assist AmericanBain) by offshoring research. Crimson uses
customers. IndyMac is also using NewIndia-based Evalueserve, as well as
York-based Cognizant Technology Solutionsindependent experts from around the
Corporation to develop next-generationworld.Wise leaders (and consultants) are now
software, which will increase productivity byasking for articulate outsourcing/offshoring
as much as 20% by 2008. All of thisstrategies. Are you familiar with the wide
outsourcing and offshoring has led toarray of business services, software
explosive growth. IndyMac has doubled itsdevelopment, and call center resources that
American workforce, in just four years, toare currently available?Dr. Mike Beitler is
almost 6,000 jobs.Charlotte-based Wachoviathe author of "Strategic Organizational
Corporation has a $1.1 billion deal withLearning.
India's Genpact to handle finance and



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