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IT Outsourcing (in Indonesia)

This morning (and tomorrow), I am giving a presentation on IT Outsourcing. We looked at the landscape - looked at Wipro, Infosys, Tata, trend in China, (call center in) Phillipines, Vietnam, and what not. We evaluated why companies outsource (their IT).

There was a question about Indonesia's postion in IT outsourcing. Well, we are not know in the world (yet), but there are some IT outsourcing companies. (I happen to run a small one :) ). We're in a different league, though. We then have the following chart to show our position:

(The text is in Bahasa Indonesia. I just took a snapshot of the page.)

In terms out positioning, I believe that Indonesia should focus on the "art" portion of IT. We are very different with the rest of the pack in terms of art (and taste?). At least, that's my gut feeling. (I rarely wrong. ha ha ha.) There's a longer story about this focus, but I have to find more time to write it down. It is easier for me to tell it in front of people. Maybe in my next presentation? We'll see.

Anyway ... I hope this could satisfy your question about Indonesia's IT outsourcing. (Err... I think you have more questions after reading this. Ha!) Until next time.


Hans said…
I think Indonesia has a few disadvantages for IT Outsourcing compared to the other countries you mention here:

1. Indonesians don't speak proper English yet (most of them at least)
2. Its (communication) infrastructure is not yet as developed as it should be. Being an archipelago of 17000 islands adds to this problem.
3. Resources are not as cheap as in China and India?

What do you think?

What exactly do you mean by art? When I was reading your post I was thinking about all the talented coders, 3d artists, and designers in Indonesia.

I'm interested in your presentation. Love to see more on this.
Andy Ghozali said…
In a way I agree with you Hans, however you can still teach old dog new tricks. I know there are a lot of English Schools around the city of Jakarta (my friend from NZ is teaching there), hence it is getting quite a priority to have English speaking Indonesian in the work force.

I agree the with the infrastructure comment. Labour fees? They are quite competitive. I also would love to see what happened to the presentation.
Anonymous said…
As an Indonesian who works @ IT outsourcing company in China, I have been growing my curiosity on the prospect of Indonesia as the next destination (considering the higher labor's cost & shortage that I see at the market here in China/India).
I'm more than open to have further discussion with all the folks there in Indonesia on this matter!

Any interested people please let me know your linkedin or email.

Anonymous said…
What are the IT outsourcing rates in Indonesia for technologies like Java, .net?
Sonal said…
Are there people who do Medical Transcription in Indonesia...? actually i need some people. Please reply?? My ID is
Arie said…
It's very interesting, (most) people in Indonesia don't realize that Indonesian IT engineer can compete with another country's.

i'm looking forward to see your presentation, by the way.
Viola said…
Thank you for sharing such a nice information regarding medical transcription!!

According to one medical survey report, it has been observed that the demands of Outsource Medical Transcription are increasing at a rapid rate.
Well, i am agreed with the word that outsourcing work in Indonesia is little disadvantages due to English language but it not impossible.
3pm Solution said…
I myself happen to run a software house and IT outsourcing company. We were compared to philipine and India labour. Which are cheaper, and has a better skill (that's what they said).
We tried to give a reasonable fee, as we work in a relatively small city. but if our competitor is that cheap, then what's the point we take the job? there's no need to compete to be the cheapest? We work to earn a living, a better living.

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