"For most companies, it's not a question of whether to off-shore, but what functions to off-shore, and how," said Asmundson. "The drive for enhanced data services, better customer support and faster time-to-market for innovative applications and services, as well as the perennial drive for profitability, means that many operators consider off-shoring a necessary strategy for growth."
The study also found:
The industry's move toward advanced data-oriented services will fuel the off-shoring trend by increasing the need for affordable support staff with strong technical skills;
Enhanced competitiveness as multiple time zones allow teams to work around the clock to reduce time-to-market for application development;
The top processes being off-shored include IT services, call centers, accounting and finance, operations and application service development;
India is the destination of choice for off-shoring, but countries such as Estonia and Argentina are coming online as off-shoring sites.
Completed in December 2003, the Deloitte Research communications off-shoring study surveyed 42 of the world's leading communications operators, representing all three major segments: fixed, mobile and cable. The sample included 10 of the world's top 20 operators on a revenue basis and the survey sample represents approximately 30% of total industry revenues - based on 2002 results. The survey looked at the industry's current activities and future expectations for off-shoring. Companies responding to the survey either own their own off-shore facilities; have established a joint venture, or are outsourcing today.
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