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The new economics of outsourcing

April 23, 2008

Instead, Lopez envisions Mexico and the rest of Latin America acting as a complement to India and other offshore locations.

Recognizing that it may not be a good idea to locate all outsourcing in one country, or even a single region, many companies spread work among several sites.

On Mar 31, Royal Dutch Shell announced a $4 billion outsourcing arrangement. The oil company awarded about one-fourth of the total to Electronic Data Systems, which over five years will handle computing services for 150,000 users in more than 100 countries.

The bulk of the work will be done in 4 places, the Netherlands, Britain, Malaysia, and the US.

While EDS has thousands of workers in India and some of the work could possibly be done there, the company is actually hiring 1,000 workers in Malaysia for this project, an EDS spokesperson says.

Image: Filipino call center agents attend to US clients | Photograph: Romeo Gacad/AFP/Getty Images

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