Selective sourcing hints at jobs lift

Terms like outsourcing and offshoring may have become synonymous with local job losses but as the new paradigm of selective sourcing emerges the potential for IT hiring looks brighter.

After 20 years of business, US IT services company Covansys established its first local presence in February this year with the opening of a Sydney office from which it intends to capitalize on the potential break-up of monolithic outsourcing contracts.

Covansys manager for Australia, and sole local employee, Rakesh Kapoor, said total outsourcing is not the right IT services model.

"We believe in selective sourcing and will tell our customers what not to outsource," Kapoor said, adding that Covansys often recommends certain things be kept in-house. "A lot of companies think they have to go all outsourced and are unsure about the options."

With three development centres in both the US and India, Covansys plans to open another in either Australia or China in the near term to support Asia-Pacific region customers.

Although, declining to speculate how many jobs Covansys' local presence is likely to create, Kapoor did say the local operations could have a couple of hundred people within three years depending on how quickly the market expands. Canberra and Melbourne offices are also earmarked for this year. Regardless of whether a full development centre opens here, Covansys will be recruiting people for software testing, Java development, and business consulting, to service the local market.

"Our model does not force any customer to offshore [and] we only recommend it if the business benefit is there," he said. "We will still have developers here."

So far, Covansys has Ford and a "large, multinational financial institution" as local customers, but Kapoor said initial discussions with prospective clients have been positive.

IDC's associate director of Asia Pacific services research, Phil Hassey welcomed Covansys' entrance into the local market, but said it will be a "massive challenge" to win business from the large incumbents.

"Covansys is not on its own [entering the market] and since the market is highly competitive, organizations won't take risks with vendors it doesn't know," Hassey said. "The medium enterprise market has the most opportunities, but they are limited because our IT market is small [so] finding them won't be easy."

Hassey said large organizations tend to be consolidating the number of vendors they have.

"Selective sourcing means three or four heads to kick instead of one," he said. "The net effect on the economy is a bit of an each-way bet. It will create jobs in project management but won't have a significant impact on the jobs market."

While Hassey does not think that Covansys has an impossible task, he said "to be honest", the odds are stacked against them.

"As ever, I would love to be proved wrong on this one," he said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Rodney Gedda

Computerworld
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?