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Sunny Malta as an Nearshore IT Outsourcing Location
Outsourcing is also known as :
Outsource,
Outsource Sales,
Outsource Software Development,
Outsourcing Advantages,
Outsourcing Article,
Outsourcing Center,
Outsourcing Company,
Outsourcing Consulting,
Outsourcing Contract,
Outsourcing Costs,
Outsourcing Debate,
Outsourcing Definition,
Outsourcing Good,
Outsourcing History,
Outsourcing Industry,
Outsourcing Information,
Outsourcing Issues,
Outsourcing Market,
Outsourcing Model,
Outsourcing News,
Outsourcing Options,
Outsourcing Problem,
Outsourcing Project,
Outsourcing Providers,
Outsourcing Quality,
Outsourcing Questions,
Outsourcing Rates,
Outsourcing Report,
Outsourcing Risk,
Outsourcing Security,
Outsourcing Service,
Outsourcing Solution,
Outsourcing Strategy,
Outsourcing Trends,
Outsourcing Website,
Application Outsourcing,
Benefits Outsourcing,
Business Outsourcing,
Business Process Outsource,
Business Process Outsourcing,
Business Process Outsourcing Companies.
A brief introduction
- Eric Wesselman
- Age 37 years
- 10 years in IT consulting
- 8 years in IT Outsourcing consulting
- Lectures IT Outsourcing at TIAS Business School
- Practice Director IT Management at DCE Consultants
- DCE Consultants: independent business consultancy;
strong in strategy implementation and innovation
- www.dceconsultants.com
T. +31 20 4499900
M. +31 6 53490570
The trend in IT and Business Process is to consider
outsourcing to low cost countries
But Malta is not on the global IT outsourcing map
While Offshore Application Outsourcing is soaring,
more countries enter the game of delivery
- The Americas
- The world's largest demand market: 2003-2008 from $ 17.7 billion to $ 21 billion
- No slow down despite political controversy and cautious management
- Western Europe
- Valued in 2003 at $ 8.8 billion, expected to reach $ 11.3 billion in 2008
- Growth is driven by recent 2004 mega deals and IT infrastructure contract renewals to include AO
- The Asia/Pacific region
- Valued in 2003 at $ 1.6 billion, expected to reach $ 3.2 billion in 2008
- Except for Australia, far behind America's and Europe
- IT infra outsourcing exceeds AO by far, AO is usually part of a complete OS deal
- Japan
- Valued in 2003 at $ 4.9 billion, expected to reach $ 9.4 billion in 2008
- Relatively immature market, due to mainly custom applications and cultural aspects
- Adoption of packages application software encourages AO
- Outsourcing to service providers that implement the application
Should you consider Malta?
Offshoring applications development - key locations
Thorough field research gave a clear view on Malta
as a nearshore location
A combination of private and public organisations were visited
Malta is a very promising nearshore IT Outsourcing
location
- The government drives the development of Malta as a nearshore IT
Outsourcing location that can compete with Eastern Europe and the Far East
- State of the art capability in the field of application development and application
/ web hosting
- The geography of Malta makes the country an attractive location
- Short term growth will be limited due to a shortage in IT staff but...
- Malta University is delivering 400 ICT graduates per annum, making the
capacity issue diminish rapidly
Malta: fit for sea, sun, sand and services
The Maltese government is repositioning the
Maltese industry into a new era of prosperity
- The traditional Maltese low value industry is being replaced by high value high
tech industry
- The government has spearheaded IT as a strategic area of interest: an
eMinister has been appointed and a national IT Strategy defined
- The Business Promotion Act has been designed to encourage foreign
investments in new business (such as ICT)
- Large investments have been done in education, students are encouraged to
study IT by the government through stipends
- The IT infrastructure on Malta has recently been upgraded to Glass Fiber
Optics and Coax
On Malta there are well established IT companies
that have emerged through foreign investments
- More than 100 IT companies varying in size from 350 - 2 FTE
- These companies are well experienced in the field of innovative IT: skills and
track records in the field of MicroSoft, Cisco products, IBM products, XML, .Net,
JAVA, ERP systems (Oracle, SAP, PeopleSoft), MS SQL, Powerbuilder,
Informix, etc
- The companies are ISO 9001 certified and use well appreciated methodologies
such as RUP and DSDM and support frameworks like ITIL
- The IT companies invest heavily in know how
- Strong international focus since Maltese market has become saturated
Most of these companies thrive on demand from the UK, Ireland and Libya
Malta is geographically attractive as an IT
Outsourcing location
- Maltese are fluent in Maltese, English, Italian and sometimes Arabic
- The culture is and has been dominated by foreign (UK) influences;
- Positive work ethics, getting things done
- Remove unnecessary overheads within the client interaction process
- Cost driven focus
- The wages are on average 50% of the wages in the Netherlands
(Lm 6500 per year for an ICT graduate; Euro 250/developer/day)
- From a logistical point of view the country is interesting: only 3 hours of flight
and you don't need injections to keep you from getting ill
The future for Malta looks promising
Maltese ICT capability is growing rapidly and is
becoming an interesting business partner
- When CrimsonWing was founded in 1998 (70 fte), this had an immediate
negative impact on the attrition rate on Malta
- Currently some 400 skilled ICT people leave university per year
(MCast and Malta University)
- Foreign investors (Wipro, Satyam, Infosys, others) are visiting Malta to explore
business opportunities
- When are you visiting Malta?