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Friday, January 05, 2007

Offshore Outsourcing: Predictions For 2007

I wrote an expanded list for sandhill.com on offshoring predictions for 2007. Amongst the key predictions :

1. Offshore majors would work on coming out with a viable approach towards offerings centered on disruptive technologies like SaaS. Global majors may work hard to demonstrate better value add to their customers leveraging their offshore presence.

2. New breed of offshoring players with different business models shall spring up. Innovation in services space would continue to come out of India.

3. We may further see change in the rankings and growth rates amongst the top 10 offshore players change based on their business models and their organizational strengths. The era of an almost automatic growth is giving way to more deterministic models of growth pursued with deliberation and delivered effectively.

4. The threat to the offshoring services industry would be coming in the form of IT infrastructure utilities - though this may be few years away. We may see some pioneering efforts by a few business units in adopting these and may also see offshore providers coming up with hybrid approaches to adopting to IT utilities(as part of their evolution)

5. Big deals get the publicity but mostly selective sourcing will remain the primary sourcing model and some statistics indicate that the number of organizations considering offshore outsourcing through big deals vs selective sourcing could be in the ratio of 1:6 and this ratio is not showing signs of improving further.

Read the complete note here.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
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