Metagrobolize

Experts Say Manufacturing Outsourcing Is Still Strong

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 »

Anecdote……

The people in China understand the outsourcing concept much better than we think, and I’d like to thank Helen of ‘justlogin.com’ for this wonderful anecdote.

Let me share a story.
A few years ago, I visited Beijing for the first time. At the airport there, I got into a taxi and paid 450 yuan (about S$100) to get to the city. To my horror, I later found out that the normal taxi rate for the same distance was 60 yuan!
Because of this bad experience, I became more careful whenever I took taxis in China.
Once Bitten Twice Shy… Read the rest of this entry »

Intel celebrates 35 years in Malaysia, reaffirms commitment to reinvest

Intel Malaysia, one of eight pioneer multinational companies to invest in Penang 35 years ago, has reaffirmed the company’s commitment to continue investing in the country.

Intel Malaysia’s newly-appointed Managing Director (Assembly and Test), Atul Bhargava, said Intel would continue to grow with Malaysia, as the company brings in more value added processes involving design and development, to enhance Intel’s competitiveness.

Bhargava was speaking at the company’s 35th anniversary celebrations at its locality in Bayan Lepas. Penang Chief Minister Tan Sri Dr Koh Tsu Koon, who was present, gave away a token of appreciation to Intel Malaysia’s long-serving employees including some employees who stayed with the company from 1972.
With an initial workforce of 100, Intel Malaysia has grown over the years and today employs some 10,000 people.

The company’s continued expansions in the country, has also translated to a high capital investments today of over US$3 billion (RM10.44 billion) in the country.

Intel Malaysia’s commitment to continue investing in Malaysia was a strong indication of the company’s confidence in the country’s business environment, the Chief Minister said.

Second Generation Outsourcing

Picking up from Steve Hamms article “A new model for Outsourcers” in his Bangalore Tigers blog http://www.businessweek.com/globalbiz/blog/bangaloretigers regarding the setting up of a new outsourcing model by a company called Antara Solutions.

Anantara Solutions is trying to revolutionize the Indian outsourcing industry by operating as a virtual outsourcing company–which taps partners with specific areas of expertise. If this model takes off, it could pose a serious challenge to the outsourcing status quo, not just in India but worldwide.

Anantara was started last year by G.B. Prabhat, who, beginning in 1995 had run Satyam Renaissance Consulting, a joint venture with India’s Satyam Computer.

They call their model Second Generation Outsourcing. Here’s how it works: Read the rest of this entry »

Firefighter Quits, Takes Job as Innovator

The pundits are everywhere espousing evidence of the failure of outsourcing. Look at all the “failed” relationships, they say.

These same commentators don’t seem to have the numbers to back up their pronouncements, but let’s agree that much smoke has been created around this topic. There’s even some fire. Except it doesn’t always – or even frequently – start where you might think. And it doesn’t have to burn down the house.

Conversations with many experienced client executives – the people who manage active outsourcing arrangements – do reveal some ongoing “fire fighting” in their relationships. The causes and severity vary, but one theme typically emerges: Most clients just aren’t equipped to manage all the dimensions of commercial outsourcing arrangements.

In fact, the skill sets and nuances required go well beyond what you need for standard contract management. And even if a client has the DNA for the job, he or she may not have the tools to stay on top of the relation and make it produce results beyond the basic service being provided.

Service providers heartily agree. They document how clients and providers enter into a relationship whose complexity may not be understood up front. That builds up stress over time as expectations don’t match and the stuff that really matters – and that may not be in the contract – gets ignored. Read the rest of this entry »

New Breed: Today’s CIO Must Manage Sourcing Portfolio Too

An insightful post by John Sloat on Information Week’s Web site uses the example of Australian airline Qantas (disclosure: a TPI client) to make the point that today’s information leaders need to be able to juggle their own homegrown projects with managing multiple, even overlapping, sourcing relations with outside vendors. You can read Sloat’s on-the-money post here: Information Week

Gone are the days when CIOs were judged solely on their ability to deliver and maintain new systems. Now the performance review measures whether the CIO can balance a technology strategy with a comprehensive “resourcing” plan to deliver the Three Cs: topflight Capabilities, desired Capacity and best Cost.

Few companies believe they can get all three without turning to outside providers, which is how CIOs took on the extra responsibility of managing a portfolio of external resources. Read the rest of this entry »

Not quite lost in translation Pt3

Here are some great examples of why India has grown so quickly to now stand at the top of the global call centre ladder…ermmmmmmmm hmmmm

Infosys, Bangalore: An employee applied for leave as follows: “Since I have to go to my village to sell my land along with my wife, please sanction me one-week leave.”

This is from Oracle Bangalore: >From an employee who was performing the “mundan” ceremony of his 10 year old son: “as I want to shave my son’s head, please leave me for two days..”

Another gem from O&M. Leave-letter from an employee who was performing his daughter’s wedding: “as I am marrying my daughter, please grant a week’s leave..”

From Accenture Administration Department: “As my mother-in-law has expired and I am only one responsible for it, please grant me 10 days leave.” Read the rest of this entry »

Another good year for Malaysia’s manufacturing sector

Both foreign and local investors continued to show interest to invest in Malaysia’s manufacturing sector with a record RM28.8 billion (US$8.23 billion) approved for the first six months of the year, surpassing the annual target of RM27.5 billion (US$7.86 billion) under the Third Industrial Master Plan (IMP3). Last year the country recorded RM46 billion (US$12.53 billion) approved investments in the manufacturing sector.

The continued interest reflects Malaysia’s cost-competitive environment for export-oriented manufacturing companies. The country’s political stability; open economy with a sound financial system; educated and skilled workforce generally conversant in English; excellent infrastructure continued to be valued by foreign investors.
The latest statistics released by the Malaysian Industrial Development Authority (MIDA) shows strong interests from foreign investors with a six month cumulative approvals of RM14.47 billion (US$4.13 billion). In 2006, foreign direct investments (FDIs) totaled RM20.23 billion (US$5.51 billion). Read the rest of this entry »