This article was downloaded by: [UNIVERSITY OF ADELAIDE LIBRARIES]
On: 24 November 2014, At: 16:01
Publisher: Taylor & Francis
Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: Mortimer House,
37-41 Mortimer Street, London W1T 3JH, UK

Information Systems Management
Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/uism20 Offshore Outsourcing: A Swot Analysis of a State in
India
a

K. G. K. Nair & P. N. Prasad

b

a

A professor at the department of business administration, College of Engineering,
Thiruvananthapuram, Kerala, India. He can be contacted at gopalmanjusha@yahoo.com. b A faculty member at the State Institute of Rural Development, Kottarakara, Kerala, India.
He can be contacted at pnprasad_2000@yahoo.co.uk.
Published online: 21 Dec 2006.

To cite this article: K. G. K. Nair & P. N. Prasad (2004) Offshore Outsourcing: A Swot Analysis of a State in India, Information
Systems Management, 21:3, 34-40, DOI: 10.1201/1078/44432.21.3.20040601/82475.6
To link to this article: http://dx.doi.org/10.1201/1078/44432.21.3.20040601/82475.6

PLEASE SCROLL DOWN FOR ARTICLE
Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the
Content. Any opinions and views expressed in this publication are the opinions and views of the authors, and are not the views of or endorsed by Taylor & Francis. The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content.
This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden. Terms & Conditions of access and use can be found at http:// www.tandfonline.com/page/terms-and-conditions IS SOURCING

Downloaded by [UNIVERSITY OF ADELAIDE LIBRARIES] at 16:01 24 November 2014

OFFSHORE
OUTSOURCING:
A SWOT ANALYSIS
OF A STATE IN INDIA
K.G.K. Nair and P.N. Prasad
Global trends indicate that IT spending will increasingly go to offshore solution providers. This article demonstrates the use of a SWOT analysis technique for identifying the strengths, weaknesses, threats, and opportunities associated with a potential IT outsourcing location. The factors assessed include business conditions, physical infrastructure, IT infrastructure, financial institution and government support, and various labor characteristics specific to a region: the state of Kerala in India.

LOBAL TRENDS INDICATE THAT MORE and more IT spending will go to offshore solutions providers (Nasscom and McKinsey, 2002).The worldwide IT recession is compelling companies across the world to cut down costs and shift their operations to the countries having lower costs. While U.S. companies have been the early adopters of IT outsourcing, an increasing trend toward this model is also being witnessed in parts of Europe.According to a Forrester Research Survey, while the average percent spent on offshore providers was around 12 percent during the year 2002, it was estimated to grow to over 28 percent by 2004.
Fueling this trend has been an increasing focus on business process outsourcing (BPO).
For example, in January 2004, Mike O’ Brian, the Minister of State for Foreign Affairs and
Commonwealth for the United Kingdom stated:

G
K.G.K. NAIR is a professor at