19th
December
2007

I would like to wish everyone who reads Metagrobolize out there, very happy Holidays and a Healthy and Prosperous New Year.
We’ll be hiding for a week or two and then coming back stronger and more controversial than ever!!
posted by Glen Stidolph in Outsourcing |
19th
December
2007
Its been some time since our last blog posts, however its not for the lack of news or articles, its been a simple cause of ‘lack of time’
We’ve received a number of emails asking if Metagrobolize is going to continue with its supply of news, information and sometimes irreverent views on the global outsourcing industry, and the answer is a very definite yes.
We’ll be back in 2008 with renewed vigour!
posted by Glen Stidolph in Outsourcing |
26th
November
2007
The recent ststistics have indicated that Malaysia ranked No. 14th as most attractive countries for foreign direct investment (FDI), according to the World Investment Prospects Survey 2007-2009 FDI by the United Nations Conference on Trade and Development (UNCTAD).
The two largest Asian economies- China and India emerged in the top two positions, followed by the US, Russia, Brazil, among the top five destinations.
Among the Southeast Asian countries, Malaysia was the third favourite FDI location, after Vietnam and Thailand, which was placed 6th and 12th in the overall ranking.
The Southeast Asian region remained a preferred destination for FDI, with five out of 20 countries among the top 20 selected countries, including Indonesia in 15th position and Singapore in 16th spot.
Others in the top 20 are Britain (7th), Australia (8th), Mexico (9th), Poland (10th), Germany (11th), France (13th), Italy (17th), Ukraine (18th), Japan (19th) and Canada (20th).
The survey, which was based on192 respondents among the largest transnational corporations (TNCs), covered factors deemed important considerations for FDI. Of which, access to large and growing markets emerged to be a key determinant of FDI growth, being cited by more than half of TNC respondents. Access to resources, in particular skilled workforce was the next major consideration, being mentioned by 17% of the respondents, followed by access to low-cost labour based on feedback by 9% of the respondents.
Read the rest of this entry »
posted by Christopher in Malaysia |
6th
November
2007
U.S. Outsourcing went down by 16% since 2006
- Europe Outsourcing Market increase 24%
- Reason of smaller, shorter and more focused deals as well as decline in the level of re-tendering activity in the U.S. market
US outsourcing operators are suffering from a “dramatic shift” in the global market as customers ditch America for Europe and Asia-Pacific, new research warns.
The latest Quarterly Index from sourcing advisers TPI shows that U.S.’s Outsourcing Contracts have declined by 16% when compared to the same period in year 2006. Read the rest of this entry »
posted by Christopher in Outsourcing |
18th
October
2007

Many of the comments I hear about outsourcing revolve around the concept of 3rd world salaries and ‘slave labour’ etc.
However, whilst salaries and costs in countries such as China, India and Vietnam are some of the lowest on the planet, it may be of some help to the purveyors of such sentiments to watch this You Tube video of Dr Hans Rosling. CLICK HERE FASCINATING!
posted by J.Smith in Outsourcing |
16th
October
2007
By all measures, the pace of new outsourcing contract awards has slowed in 2007. The third quarter reports are out any day now.
The paradox here is the continued strength in the flow of work to India-led providers. You can see that from the providers’ earnings reports. My firm thinks clients are opting for effort-based contracts – paying per worker per hour — rather than traditional outsourcing relationships that specify the scope and quality of services.
Watch the news in the coming weeks, and I’ll bet you start to see a renewed emphasis on productivity-based and outcome-oriented contracting. The provider community has the expertise and the tools to deliver great value to clients through real outsourcing, but they must surrender the old ways of selling effort. They have to paint houses like pros.That said, potential purchasers of sourcing will likely be cynical about such quick cycles in business models. Just as they were getting comfortable contracting for people in low-cost destinations, the business model will change to reflect the rising tide of labor costs influenced by currency exchange rates, taxation policies and rising wages. The prospect of higher labor costs for effort-based contracting won’t be very appealing.
I expect outsourcing demand to suffer from these shifts for a while, at least until we converge on a sustainable business model that blends cost, capacity, and capability. That’s the model that will create long-term value.
posted by Peter Allen in Outsourcing |
10th
October
2007

There are some very striking similarities in the recent research conducted by Connect Ltd, an IT support company specialising in providing IT support to SME’s in the UK and research by Catenate Sdn Bhd, a Malaysia based outsource sub contract manufacturer, also specialising in manufacturing for SME’s in UK, Australia and US.
Even though these two companies operate in very different spheres of the outsourcing spectrum, it would seem that SME’s share very similar thoughts when it comes to considering outsourcing.
Connects research, which polled 200 UK IT managers and directors, found that the number 1 reason for considering outsourcing was ‘guaranteed response times’, (#3 in the manufacturing poll) whereas in the SME manufacturing sector, the #1 was increasing exposure to new more specialised work practices and skill sets allowing in-house employees the benefit of being able to concentrate on core competencies or higher value strategic tasks, which turned out to be #2 in the IT sector poll. Read the rest of this entry »
posted by Glen Stidolph in Outsourcing |
8th
October
2007

Selamat Datang Ke Malaysia
recepción a Malasia
Welcome to Malaysia
Spain to open first regional business hub in Malaysia
Come October 24, the Government of Spain is set to open its first regional business centre in Kuala Lumpur, aimed at assisting Spanish companies expand into the Asean (Association of Southeast Asian Nations) Region. Spanish Secretary of State for Tourism and Trade, Pedro Mejia said the centre would enable Spanish companies to have “a real perspective and knowledge of what Malaysia can offer so as to continue setting up businesses here.”
The centre, to be located in Menara Boustead Kuala Lumpur, will offer office space, secretarial services and other functions at minimal rates to the Spanish companies. These companies would also have access to the information; research; telemarketing and market as well as legal advice and support from the Economic and Commercial Office of the Spanish Embassy.
Currently, there are 25 Spanish companies that have a presence in Malaysia and these companies are involved in various businesses such as automotive engineering, medical equipment and fashion boutiques.
posted by Glen Stidolph in Malaysia |
5th
October
2007
Mix equal parts outsourcing, Web and open innovation, garnish with “The Wisdom of Crowds” and you get “Crowdsourcing.” Just don’t expect to see it in the upper echelons of Corporate America just yet.
Author Jeff Howe (http://www.wired.com/wired/archive/14.06/crowds.html) characterizes this phenom as distributed labor networks using the Internet to exploit the spare processing power of millions of human brains, much the same way that dispersed computing projects harness the processing might of millions of chips.
MySpace, eBay, Wikipedia, and the vast universe of Linux developers further illustrate the power of crowds properly organized. Howe’s article makes the point that these Web initiatives – previously taboo with old-line businesses – now realize that technological advances are allowing them to source to anyone connected to the proverbial network.
At the same time, such advances are dissolving the cost barriers that once separated amateurs from professionals. Now all the diverse folks who make up the crowd can connect with companies in everything from pharmaceuticals to television. Hobbyists, part-timers, and dabblers have a new source of income, and businesses have a new, cheaper, and often more inventive source of solutions.
Read the rest of this entry »
posted by Peter Allen in Outsourcing |
28th
September
2007

The outsourcing of manufacturing processes is not only still vibrant, but is continuing to gain momentum as product makers begin to turn their attention beyond China, to such countries as India and Vietnam according to experts attending the National Manufacturing Week Conference.
“People tell me that we’ve probably got about three years in China before their standard of living goes up,” said Richard Ligus, president of Rockford Consulting, a firm that specializes in manufacturing, distribution and supply chain strategies. “After that, they’ll probably go to India. ad after that, to Vietnam.”
Ligus joined other speakers at the conference at a session titled “Offshore Outsourcing.” Read the rest of this entry »
posted by Glen Stidolph in Outsourcing |