Survey: 275,000 telecom jobs to go offshore by 2008

Scarlet Pruitt   Today’s Top Stories    or  Other Outsourcing Stories  

Learn-Fast Guide: It's All About You Sign up to receive Security Resource Alerts

March 24, 2004 (IDG News Service) -- Telecommunications operators could be the next group to take advantage of the cost savings and enhanced services made possible by moving operations overseas, according to a new survey conducted by Deloitte Research.
Global operators are expected to move 5% of the industry's 5.5 million jobs, or 275,000 positions, offshore by 2008, the professional services and advice organization said today.
What's more, the industry is expected to reap cost savings of $14 billion a year by 2008 from improved call center capabilities and enhanced broadband and mobile data services, according to the research company.
Offshoring -- when companies move jobs and sometimes operations from their home countries to locations where labor and business costs are cheaper -- has become common in the high-tech and financial services industries. Telecommunications companies are now poised to take advantage of the trend, Deloitte said, adding that early adopters could realize cost savings of 20% to 30% by 2008.
The industry's move toward data services will also fuel the trend, making it even more imperative that companies have affordable and technically skilled support staff, Deloitte said.
Call centers, IT services and application service development and accounting and finance operations will be among the top offshore processes, the research firm said, adding that places like India, Argentina and Estonia will be destinations of choice.
However, offshoring isn't an entirely rosy scenario, Deloitte warned. Companies could face obstacles that arise as a result of the complexity of operations, loss of control, language and cultural barriers and objections from groups that don't want to see domestic jobs move overseas.
Deloitte recommended that companies engaging in the practice start small, set realistic expectations, develop offshore expertise, find the right partner in a host country and be ready to move operations back home if the business, economic or political climate in the host country changes.
Deloitte derived its findings from a December 2003 survey of 42 operators in the fixed, mobile and cable segments.

Reprinted with permission from

For more news from IDG visit IDG.net
Story copyright 2006 International Data Group. All rights reserved.

Print this Story

Send Us Feedback

E-mail this Story

Digg this Story

Slashdot this Story

"Today's US college business professors, hopefully, aren't all like the one who is teaching a Florida university's business major. Maybe..." Read more... "For the first time in 30 years, there were no public offerings from a venture backed company. Look for more..." Read more... Read more Management posts or See all Blogs

Microsoft promises four patches next week Google gives away home-cooked Web application security scanner Storm botnet stages Fourth of July attacks More top stories...

Microsoft trumpets security additions in upcoming IE8 Apple cuts price of high-end SSD MacBook Air by $500 Ultrathin showdown: Apple MacBook Air vs. Lenovo ThinkPad X300 vs. Toshiba Portege R500

This old laptop: Revitalizing an aging notebook on the cheap All it takes is a couple hours and about $125 to breathe new life into an old laptop. Here's how. Bill Gates moves on Is Microsoft's Golden Age over? What are Gates' most memorable quotes? Find out in Computerworld's complete coverage of the end of the Bill Gates era at Microsoft. Five things you should never tell your boss There are some things your CIO definitely doesn't want to hear. Also don't miss the flipside, Five things you should always tell your boss. Hands-On: Firefox 3 fixes what's broke and keeps what's right With its latest version, Mozilla's browser continues to raise the bar for what Web browsers should be. Windows Vista A to Z Reviews, analyses, how-tos, visual tours, hot issues and predictions about Microsoft's new OS. More Continuing Coverage After 9/11: Homeland SecurityAsk a Premier 100 IT LeaderBlackBerry Legal BattleData Security BreachesElectronic VotingFirefoxH-1B VisasHP's Boardroom ScandalHandheld DevicesHurricane Katrina AftermathMicrosoft Legal IssuesMicrosoft's VistaOpen SourceRFID TechnologySCO's Linux FightSarbanes-Oxley ActSpamVoice Over IPWi-FiWindows Meta File VulnerabilityWindows XP Service Pack 3 IT Careers 2010 Four years from now, the IT field will be a vastly different place. Will you be ready? More Special Reports Premier 100 IT Leaders 2007 Best in Class2006 Computerworld Horizon Awards2006 Premier 100 IT Leaders2006 Salary Survey2007 Best Places to Work in IT2007 IT Forecast2007 Premier 100 IT Leaders40 Years of ComputerworldASPs, Take TwoBest Places to Work in IT 2003Best Places to Work in IT 2004Best Places to Work in IT 2005Best Places to Work in IT 2006Business Intelligence Home RunsBusiness Intelligence: Smarter BIBusiness Intelligence: The Future of BICRM Goes VerticalCRM: Sober CRMCareer Planning Guide 2005Careers: IT Profession 2010Computerworld Horizon Awards 2005Data Management: Mining for GemsData Management: Taming Data ChaosDevelopment: Hard-Workin' Web SitesDevelopment: New Tools New ChoicesDevelopment: The New World of Application DevelopmentDevelopment: The Web Services TsunamiDevelopment: Web Services HurdlesDisaster Recovery: Preparing for the WorstE-commerce Grows UpE-mail/Groupware: Big DecisionsFaces of Mobile ITForecast 2006Global MobileHardware: Multiple Cores, Multiple ChallengesHardware: On-Demand Un-HypedHardware: The Shape of Things to ComeHorizon Awards: 10 Cool Cutting Edge TechnologiesIT Management: Guide to Managing VendorsIT Management: Navigating Global ITIT Management: Recovery AheadIT Management: The Future of ITIT Management: The Resourceful Project ManagerInnovative Technology Awards 2004Management: Reinventing ITMicrosoft in TransitionMobile/Wireless Leaders and LaggardsMobile/Wireless: The Untethered WorkerMobile/Wireless: Tiny Gadgets, Huge CostsNetwork Management: Taking ControlNetworking: Turbulence Ahead!Networking: VoIP Goes MainstreamOperating Systems: In the Slow LaneOperating Systems: Linux Goes GlobalOperating Systems: Should You Nix Unix?Outsourcing: Offshore Buyer's GuideOutsourcing: Outsourcing DangersPremier 100 IT Leaders 2004 Best in ClassPremier 100 IT Leaders 2005 Best in ClassROI: Do the Math!Salary Survey 2003Salary Survey 2004Salary Survey 2005Security Action PlanSecurity: Compliance HeadachesSecurity: Proactive SecuritySecurity: Risk and RewardSecurity: Tips From Security ProsSouped-up SecurityStorage: Battling ComplexityStorage: Cheap & Secure Data StoresStorage: Stretching Your Storage DollarsStorage: The Lean Storage MachineStorage: The New Rules of StorageStorage: The Ultimate Backup GuideSupply Chain: Missing LinksSupply Chain: RFID Reality CheckThe Business of SecurityWeb 2.0 SecurityWireless: Wireless At Work All Zones Application Performance Zone Business Continuity Zone Data Center Management Zone Enterprise-Class Security Zone The File Data Management Zone Grid Computing on Windows Zone Security Management Zone ITIL Best Practices Zone The SAS Zone Storage Virtualization Zone Business Intelligence and Analytics Zone See your link here

Achieving World-class IT Management Managing people and projects in a global landscape requires leadership, diplomacy and heart. (Source: Computerworld) IT managers have to stay on top of the latest and greatest management theory as well as the latest and greatest technology trends. This Executive Brief focuses on the tools needed to maintain and assess the business value of IT resources: managing a diverse work-force in a global environment, overseeing projects that are succeeding as well as those aren't, negotiating software deals, and much more. Download this executive briefing  Cost Effective Scaling with Virtualization and Coyote Point Systems Download this white paper, free, compliments of Coyote Point Systems. (Source: Coyote Point Systems) Learn more about the industry trend toward virtualization, how server consolidation has increased the importance of application uptime and the steps being taken to integrate load balancing technology with virtualized servers. Download this white paper  Why SaaS is Vital to Email and Web Security Why SaaS is Vital to Email and Web Security Download this webcast, free, compilments of Webroot Software Go to the webcast  White Papers Read up on the latest ideas and technologies from companies that sell hardware, software and services. Deploying Virtualized NetWare on Linux Whitepaper Toward More Flexible, Next-Generation Collaboration Solutions Driving Business Success Through Workgroup Choice and Flexibility View more whitepapers

• Microsoft promises four patches next week
• Google gives away home-cooked Web application security scanner
• Storm botnet stages Fourth of July attacks
• More top stories 

Creating Tiered Storage Architecture This paper shows how Brocade StorageX enables tiers of storage across Windows and NetApp storage to align storage practices with organizational objectives. Download this white paper now!