Panel Sessions

Session Two: Outsourcing Trends in the Region

The definition of outsourcing continues to broaden, with call centers providing more structured and commodity-like services and business process outsourcing represents a higher-value added service requiring greater industry knowledge and adaptation to specific customer and industry requirements.

The offshoring of services started some two decades ago with IT services from the US to India and has gained momentum in recent years. The UK and US account for 82% of India’s exports of software and IT-enabled services. In addition services of all kinds are being restructured and relocated such as call centers, business processes, drawing, testing and R&D.

Offshore outsourcing of business processes is expected to grow from $1.3bn in 2002 to $24bn in 2007, raising the international share of the total market from 1% to 14% in five years. Financial and IT companies generate most of the projects with the contract service providers. Around 80% of the largest multinationals (Fortune 500 companies) have already established shared service centers.

Companies seek to reduce 20-40% of costs. Savings relate to the use of cheaper labor and the consolidation of activities in fewer locations. Cost reduction is not the only the trigger to offshore as companies also seek to improve quality. Successful outsourcers should have demonstrable industry vertical skills supported by up-to-date and redundant telecommunications infrastructures.

Key Discussion Points:

• Successful outsourcing companies/providers in Jordan and the region will discuss the required critical success factors, as well as the numerous opportunities for potential outsourcers.

• Multinational corporations that have outsourced parts of their value chain will explain the selection factors that firms use when choosing a service provider, the benefits to bottom-line operations as well as the challenges in streamlining processes across borders.

• Regional and international business services providers will share experiences, discuss business models and give a vision for the future. This session will focus on Jordan and the region’s capabilities in being a player in regional and international business process outsourcing.