Profile of Outsourcing Engagements – California

December 7, 2016 4:53 pm | Updated 1 year ago.

We analyze the profile and type of projects/engagements that are outsourced by companies in California compared to other regions in the USA. Given the vastness of the country, each region in the USA has a separate profile of jobs being outsourced and it is important for the offshore outsourcing vendors to align their sales strategy and deploy resources in line with these region-specific profiles. A significant percentage of the large outsourcing engagements in East Coast of USA, especially in New York and Boston region are in financial services domain and consist of either large application maintenance and support engagements or large business process outsourcing engagement. A significant percentage of outsourcing engagements in midwest and mountain region are in manufacturing or services domain. In contrast, a huge percentage of outsourcing done by companies in California relate to technology and innovation.

When we analyze the profile of outsourcing and offshore outsourcing engagements from companies in California, we see very little large ADM or BPO type of engagements. The outsourcing engagements in California mostly are in the following categories:

  1. Outsourced Product Development (OPD):

    A number of technology start-ups and also midsize technology companies in California, especially from the Bay Area and the Silicon Valley, outsource their product development to offshore vendors to ensure that the cost of development of the MVP (Minimum Viable Product) is within their budget. To be successful in delivering engagements of this profile, the Offshore vendors need to ensure utmost adherence to IP protection, maintaining the confidentiality of information and last but not the least delivering code that meets the design standards of the customer.

  2. Business R & D Centers:

    A number of businesses in California outsource activities like business trend analysis, competitive analysis, and more importantly how the emerging technologies can be used for driving business growth. To be successful in delivering engagements of this profile, the offshore vendors need to deploy staff that is not only well conversed with emerging technologies, but also in the application of these emerging technologies in Client’ business. A number of companies in India have over the past few decades invested in developing both domain and technology skills and are well placed to execute engagements of this profile.

  3. Technology and Innovation Centers:

    A number of companies in the Bay Area and the Silicon Valley, including companies like CISCO and Google have outsourced parts of their innovation to offshore locations including countries like China and India. While some of the work is done in their own captive centers, a lot of work in this profile of engagements has also been outsourced to offshore vendors. To be successful in executing this profile of engagements, the offshore vendors need to deploy staffs that are highly proficient in the technologies of the client and also the emerging trends in these technologies.

  4. Automation:

    Companies in California are the leaders in automation to reduce manual intervention with innovations in robotics, drones to self-driven cars. Keeping in line with this culture, California companies look for the high level of automation in engagements outsourced to offshore vendors. For example, GAVS Technology, one of the ecosystem partners in D2E’ Aggregator platform brings significant automation in Infrastructure Management by leveraging Artificial Intelligence techniques and Analytics in conjunction with machine learning. To be successful in outsourcing engagements with California-based businesses, the offshore vendors must look for opportunities for automation in every aspect of the engagement.