PPT Diversifying selection criteria are changing outsourcing landscape PowerPoint presentation
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Diversifying selection criteria are changing outsourcing landscape
Labor cost accounts for only 23% of overall costs. Focusing on raw labor cost often ended up underestimating hidden costs and. Cost of living. Rent. Transportation. PowerPoint PPT presentation
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Diversifying selection criteria are changing
outsourcing landscape
Buyers tend be more selective and strategic in
the way they approach outsourcing
Growing complexity in outsourcing decision
- Direct labor cost is not everything
- Labor cost accounts for only 23 of overall costs
- Focusing on raw labor cost often ended up
underestimating hidden costs and undermining
quality and timely delivery of service
The trend indicates clear focus on quality,
accessibility to customers and employee attrition
Behind outsourcing success are untold stories
about overcoming challenges and managing risks
beyond cost reduction
- Growing important of providers proven track
record and guaranteed service levels,
time-to-market and flexibility
due-diligence over hidden costs employment,
governance,
Dubais economy landscape shows strong growth in
Finance, real estate, energy
- the unprecedented growth rate of the local
investment market that has been the pattern since
the establishment of Dubai Financial and
International Financial Markets.
UAE with new residential and commercial units
being constructed at a pace that seems to only
just keep up with surging demand, both from
prospective occupiers and investors
Growing industry base opens a new window of
outsourcing opportunity in Dubai
Strong opportunities for outsourcing in the region
- Significant trend of major outsourcing contract
awards, particularly in the government sector,
which remained at the forefront of spending
in terms of IT investments, which was evidenced
by very high level of interests outsourcing from
finance sector
(The UAE business forecast report, BMI, 2007)
In spite of high living expenses, Dubai provides
attractive environment for outsourcing
- Geo-political stability
- Regulatory support Free zone environment
- Developed city infrastructure lifestyle
attracting talent from other countries
- Fast growing industry landscape, fast pace to
maturity
- Needs for outsourcing evolves quickly
- Easy access to multinational business base
- Higher level of multicultural talent pool
- Much lower attrition rate
However, the key issues still need to be
addressed to position Dubai as an outsourcing
destination
Three major challenges for Dubai to be an