More outsourcing to India
02-Dec-2009
With cost saving becoming more important in the downturn, foreign universities are now joining the IT offshoring bandwagon. While most of the educational institutions have begun outsourcing functions like school management and fee collection management, Australia University of Canberra (UC) has gone a step further by outsourcing its entire IT system to Wipro Technologies.
UC vice chancellor Stephen Parker says that the university was advised to look at IT outsourcing as an option when they were looking to improve their systems. The five-year contract is a arrangement where Wipro will maintain processes like networking, financial administration, HR, payroll and student administration and applications,he said.
UC restructuring plan envisages annual savings of $5 to 7m of which outsourcing will be a major part. Still in its infancy, there are no estimates for outsourcing potential of the education sector. However, analysts say the market is about a couple of billions dollars. Australian universities are expected to outsource $650m worth of work in the next few years.
Wipro Technologies is now focusing big on this sector. Kannan Natarajan, general manager, government and education sector, Australia and Singapore of the company, said, We have been talking to other universities. There is lot of interest at exploring the offshoring option.
US universities are also seem to be keen. Geoffrey C Tritsch, vice president of US-based Vantage Technology Consulting Group, said, I wouldn't rule out outsourcing to Indian service providers in future.
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