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Improving Business Through Offshore-Outsourcing

The world of outsourcing nowadays is getting bigger and bigger. We all know that companies from the US and UK are the first countries who outsourced their businesses outside the country or what we called as offshore outsourcing. We all know that India is still the leading outsourcing destination in the world today, followed by China and Philippines who also competing to India to the top.

The crazed of business outsourcing was tremendously uncontrollable because of the great benefits of it. I know that most of us already know why companies from the US and UK outsourced their businesses, to cut-costs, right? India and Philippines are the countries who have low costs of living, that’s why a lot of investors from US and UK decided to invest to these countries, as well as the potential competencies of these countries to boost-up their business was extremely huge.

It’s not easy to outsource your business outside the country if you have no proper outsourcing strategic plan. You should know the consequences that may possibly happen to your company before you decide to outsource. The first thing to do is of course finding the right partner who can help manage your business to improve, with a broad knowledge in business, and/or in the industry as well. After finding a right partner, and discussing your strategic plan with your partner, finding a right location for you company, to the country you have been outsource, and then finding a qualified staff.

However, a lot of investors nowadays are not just only focusing on their business to cut-costs, but also they go to countries and outsource their businesses, with a skillful workers and great competencies as well.

Hence, countries that have skillful and competitive workers are a huge advantage to lure a lot of investors to invest in their country.


August 22, 2008 Posted by | Outsourcing | , , , , | 6 Comments

Egypt: Following the Trend of IT Outsourcing

The world of outsourcing today is getting bigger and bigger. Huge IT companies around the globe are gradually hooked-up on the trend of outsourcing and are opting to outsource their businesses or services outside the country to cut-cost, as well as to achieve growth and agility.

Countries such as India, Philippines, and China are the world leaders of IT outsourcing services today. Egypt is the newest in the long line of countries that is about to set up a government agency that would focus on putting its IT services on the market and make it open to businesses overseas.

According to Amin Khaireldin, a board member of Egypt’s Information Technology Industry Development Agency (EITTDA) the country has learned a lot from India’s paradigm. He also said in his statements that they have studied the happenings in India carefully and later learned two things: that there is a need to focus on the country’s talent pool in order to keep supply ahead of demand and that it has to be made sure that there are enough reliable infrastructures”.

The Egyptian government together with representatives of the industry has approached universities to help design an IT curriculum that hopes to produce 40,000 graduates per year for the next three years who are able to work for the outsourcing industry.

The central infrastructure investments, along with the construction of a technology village near Cairo, have attracted three huge companies to outsource business processes in Egypt. The internal IT infrastructure investment has grown from $4bn (£2bn) to $12bn (£6bn) in the past three years. Consequently, rising labor costs in India have led cost-cutting outsourcers to look elsewhere.

Egypt has cut corporation tax from 42 per cent to 20 per cent and began customs reforms to improve trade. Also, a competition prize offering three startups a year worth $50,000 (£25,000) and free resources has led to a number of innovative new firms.

According to Stephen Page, Chief Executive of hardware manufacturer Sapphire, says he has been happy with his company’s recent outsourced operations in Egypt. “It has good value, good workers and not too much red tape. We have found that the infrastructure is at least as reliable as in Russia or India.”

As of now, Egypt is the 13th best outsourcing destination globally, and on average 14 per cent cheaper than India.

It is a good thing for Egypt to be receiving positive feedbacks from companies who outsource their business functions to the country. If they show continuous progress and increased competitiveness in the industry, huge companies from the US and Europe would probably decide to outsource their business functions in the country.

July 25, 2008 Posted by | News, Outsourcing | , | 1 Comment

Outsourcing: Differences Between European and US Companies

European and US companies are competing with each other, and showing their differences on outsourcing. According to Ernst & Young’s “European Outsourcing Survey 2008”, 70% of European companies are already outsourcing at least one function of their business, with 20% set to increase their level of outsourcing in the next two years, as they increasingly view it as a means to gaining a competitive edge.

The survey is consisted of interviews with more than 100 business leaders from companies with an annual turnover more than 100M euros in France, the UK, Germany, Italy, Spain and Belgium. Moreover, the survey found the main reasons for outsourcing were cost savings (49%) and better quality through the hiring of specialists (33%). The functions usually outsourced maintenance (76%), logistics (73%) and computing/telecommunications (68%).

Companies from Belgium recorded the highest rate of outsourcing with 81%, while France recorded the lowest start rate at 63%, though they established one of the widest ranges of outsourced functions, with an average of five functions outsourced per company. Although a widespread business practice in the UK (71%), outsourcing remains limited to an average of only three functions.

European firms need to be more scalable and profitable when competing in the global economy, having to deal with a strong euro is creating a general movement towards the disintegration of the traditional vertically integrated business.

However, in the US, outsourcing is more multifaceted or complex, particularly in the manufacturing division as soaring fuel and transport costs raise concerns.

The outlay of shipping an average container from Shanghai, China, to the US eastern seaboard, as well as inland costs, has tripled since 2000 and will triple again if oil prices reach $200 per barrel as some experts predicted.

According to the survey by the National Association of Manufacturers, nearly half of North American manufacturers consider the US is the most attractive country for business growth in the next three years, and more than half expect to become more globally competitive in the next five years.

However, it may impact the fuel prices, sluggish or even reverse outsourcing in some business sectors; it will not cause a dramatic shift in the globalization of the supply chain.

July 21, 2008 Posted by | News, Outsourcing | , , , | 4 Comments

The Effect of Outsourcing in US Economy

The impact of outsourcing in the US economy has evoked extensive emotions to many, especially from presidential candidates and labor groups who criticized its practice. But economists and chief executives defend it as a natural succession of the economy.

In today’s fast paced economy, it’s not new that outsourcing chased cheap labor costs around the globe for decade. But in recent years, the effort has move stealthily into higher mechanism and income brackets, and it shows no signs of slowing down.

The latest protest is fueled by the fact that some service professionals, once insulated from outsourcing, are watching their jobs head out of the country during a largely jobless recovery. It is undecided how many engineering, technical support, accounting and other professional jobs have moved offshore in the recent years. However, various industry watchers believe that 200,000 service jobs could be lost each year for the next 11 years, and that some American job seekers are concerned as well.

Although, the outlook for others is that it is an opportunity that we are just on the leading edge of a transformation of what work means around the world.

There are a number of reasons why outsourcing occurs; corporations are under constant pressure from their investors to increase profits. Going from $9.00 an hour for tech workers to 27 cents an hour for labor, has provoked corporations to overlook other costs associated with outsourcing. Bonuses are defined at the year’s end and that is long term enough for these corporations.

Another reason why outsourcing still evolves is that more and more companies are viewing the world as a global marketplace, and sometimes requires building factories within outsourced countries in order to sell products, wherein manufacturing companies also don’t want to be left behind. Almost everything in this world is moving to outsource.

The impact of outsourcing in different parts of the world today was so tremendously huge. Even though, the effect of outsourcing in the US economy is negative, still majority to the countries around the globe who have favored that outsourcing really did well for their economy.

July 4, 2008 Posted by | News, Outsourcing | , , , , , , | Leave a comment

When Can We Say if SEO is Organic?

Many of us know what SEO is. However, some of us are still uncertain if an SEO is organic or not. Of course, opposite organic SEO is what we call non-organic SEO. We can say an SEO is organic if the listings are natural and if websites do not rely on commercial means to be listed.

Organic listings are those that appear on the left hand side of the search engines such as MSN, Google and Yahoo. Major search engines have their own ways of assessing the importance and thus positioning websites on their organic or natural listings, making organic ranking a truly complicated process. In search engines, these algorithms are not published, but a lot of web masters have learned by experience and developed techniques for the improvement of organic rankings.

Most online marketing businesses are more favorable of organic SEO compared to “Non-Organic SEO”. In Webster Dictionary, “organic” is defined as instrumental; acting as instruments of nature or of art to a certain destined function or end.

Organic SEO, if done properly in a step-by-step approach, can literally increase traffic and rankings for years. It can also contain overall marketing costs, as the use of PPC (Pay Per Click), is not needed as much with this method. The main drawbacks of this type of SEO, however, are the length of time it takes to properly implement all the necessary steps and the length of time it takes the Search Engines to thoroughly spider and index a site that has implemented Organic SEO.

Overall, Non-Organic SEO methods are quite popular, being a much quicker means to rankings and placement. Links might be purchased from “link farms” that specialize in the promotion of links to others.

Although non-organic SEO can speed up rankings and placement initially, care needs to be given when using any of these methods. If keyword dense pages are automatically generated en masse, the Search Engines might view large sites, with large numbers of such pages as “Search Engine Spammers” and a risk of being banned does exist. In addition, pages may initially place very high, only to drop lower rather quickly, as the Search Engines still place a great emphasis on good content, which is not usually the focus of the Non-Organic” type of SEO.

June 19, 2008 Posted by | Search Engine Optimization, Uncategorized | , , , , , , , | 5 Comments

Outsourcing: Davao City to be its new Center

Recent studies have shown that Davao shows potential to be the new Center for outsourcing. In the headline news that I’ve read yesterday, according to a research by XMG, it states that organizations in the city belonging to the business process outsourcing (BPO) industry are expected to lead the development of the area as a robust technology hub.

XMG added, citing a study it conducted between January to March 2008, saying that outsourcing vendors who participated in the survey are very bullish about Davao City, primarily due to the area’s larger population of untapped qualified resources compared to Cebu City in the Visayas.

The study highlighted that competition in Cebu City is nearing saturation as the talent ramp-up continues.

The study also highlighted the population of Davao City as considerably higher than other Tier-2 offshoring cities globally. In the Philippine context, Davao City’s population is 71% higher than Cebu City, 499% larger than Olongapo-Subic City, 333% higher than the Angeles-Clark area, and 340% larger than Baguio City.

“The city’s estimated workforce is twice of Cebu, 9 times of Subic, and 7 times of Clark, and 6 times of Baguio. This has not even taken to account the manpower pool at the nearby cities and provinces of Davao City,” the company said.

According to the study, Davao City has various educational institutions annually yielding a higher number of IT and BPO qualified graduates than Subic, Clark, and Baguio by 689%, 278%, and 40% respectively.

Wow, this is really good news for all davaoeño wannabes who want to be part of the IT outsourcing companies in the region. This is also an over whelming experience to be a center of outsourcing industry, and overcoming the top outsourcing center, which is the Visayan region.

But the question in my mind is the city well prepared for asserting as a viable alternative information technology hub three years from now?

June 5, 2008 Posted by | Outsourcing | , , | 3 Comments

Lure Your Visitors to Buy Your Products

One of the main reasons why a website has driving good traffic and gains high Page Rank, it’s because not just only having a good content but also the quality of your website’s home page.

I have some important thing to do to make a good impression from your visitors and make them as your customers.

  1. Flash intros- avoid flash intros to your site because it will take time to load and time to play, because most of the visitors nowadays are not in awe anymore but in a hurry. Don’t make your visitors wait, so that they will not be tired waiting of something. If you love putting flash intros, integrate it into your home page, but add a call to action at the end.

2. Broken links and pages-

There are more broken links on the net.

Do yourself a favor and download Xenu’s Link Sleuth ( – this will run a check on your website because I really tried it, and among some pretty good information tell you where your broken links are.

3. Design- There is some obvious designs slips you need to avoid.

  • Hard to read type – Way too many sites use fonts smaller than 10 point – it just won’t get read, simple.
  • Logo / Branding – In days gone by you’d have to employ a big agency to get your image / logo / and branding done. There are some great guys on who can take care of this for you. Remember when people are searching for your product or service they will be comparing you with the competition. You have less than 8 seconds before the average visitor leaves your site
  • Too many small business owners or one man bands selling a “product” (not service) and put their mug shot on there – why? They’re not buying you they’re buying your “product”. Think about the images and elements you use on your page. They must have a function and not because I think it looks nice – no. Get a blog if you want to showcase yourself.
  • Color – No one does black backgrounds anymore – get with it. Neither do they do visitor counters. Corny clip art found in Microsoft Word is a no. There are loads of free stock image sites out there.

June 3, 2008 Posted by | Information Technology, Search Engine Optimization | Leave a comment

Top 10 list of Web Hosting Sites

First, let’s discuss what web hosting is. Web hosting is a service which assigns space for customers to showcase their websites on computer servers that are connected to the Internet 24/7.Servers are powerful computers that have extremely huge hard drives, or an array of hard drives. Space is then rented to those who want an “online presence”.

Every server on the Internet has a unique numerical IP (Internet Protocol) address. You can think of servers as apartment buildings with unique addresses. Each apartment unit within each building is vague to space rented out for individual websites. And like real apartment buildings, each unit also has an address based on “the building” in which it is located. When you rent a space on a server, you’re setting up house on the Internet. You can be reached by a unique address (the website address), which is based on the server’s address.

Tips for Web Hosting

Disk Space – The amount of hard drive space on the host server, this space is used to store all codes, files, databases, images, and videos for your site. You generally want to future-proof your site by getting a plan with larger amounts of disk space than you need.

Bandwidth – The amount of data that can be sent to or from the host’s server measured in bytes. This term is often used interchangeably with data transfer. Data, whether it is text, image, audio, or video, is requested by visitors of your site and then transferred from the server your site is on. Many hosts have a limit in place for bandwidth, which is called ‘monthly data transfer’.

RAM – Random Access Memory, commonly known as RAM, is the amount of memory on the server that your site can use. If your site or service is very resource intensive, say a video site, you are going to want a large amount of RAM. A smaller site, say a personal blog, can get by on smaller amounts of RAM.

Here are the top ten lists of web hosting sites:

The following web hosting sites are ranked according to price, popularity, reliability, control panel, features, overall usability, and tech support.


June 2, 2008 Posted by | Information Technology | , , , , , , | Leave a comment

Pharmaceutical Industry Hooked Up by the Outsourcing Boom

The pharmaceutical industry has been slower than other sectors to adopt outsourcing, largely due to concerns over protecting valuable intellectual property. Rising costs and decreasing margins are leading more pharmacy companies to outsource.

According to an, ten of the largest pharmacy companies, and four of those, have announced major initiatives to outsource manufacturing activities last year. The announcement identifies the increase as one of the top 10 strategic issues currently facing the pharmacy industry.

This transition towards outsourcing of manufacturing is likely to be followed by other functions within pharmaceutical companies, including some elements of R&D.

Actually, the movement of pharmacy R&D offshore already appears to be happening.

The continuous increase of outsourcing may help pharmacy companies gain business benefits other than cost reductions; this includes faster time-to-market for new products, entry into emerging markets, and an enhanced focus on brand-building activities.

Of course, a due amount of risks is present, that’s always a common factor in outsourcing. While pharmaceutical companies appear less concerned than before about the loss of intellectual property, it could well come back to haunt major pharmaceutical companies as the true cost and complexity of manufacturing becomes transparent. It’s also possible that contract manufacturers could develop enough expertise to compete head-to-head with former clients.

Though it’s not likely a direct concern of the pharmaceutical companies because removing jobs from the U.S. and Europe will affect those economies. Pharmacy accounts for 640,000 jobs in the European Union, including 100,000 in R&D, and a €34 billion (U.S. $53.4 billion) trade surplus. Because pharmacy drives so much economic activity, regulators may possibly attract their attention by outsourcing industry.

May 28, 2008 Posted by | Outsourcing | , , , | Leave a comment