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Outsourcing predictions for the new year 2008

A high importance is given to the IT outsourcing industry. From this point of view, there are two special “destinations” for the corporations: India, and Eastern Europe.

Outsourcing predictions for the new year 2008

Phil Fersht suggests some trends for the new year:

  1. Offshoring panic will continue, but will force providers to innovate
  2. The standardization of technology platforms within Business Process Outsourcing (BPO) engagements will take center stage
  3. Intense competition among the IT Outsourcing vendors will drive the uptake of Remote Infrastructure Management (RIM)
  4. Adoption of Business Process Outsourcing will continue to grow, but at a slower – more cautious pace
  5. Finance & Accounting Outsourcing (FAO) has enjoyed unprecedented growth over the last three years as firms take advantage of low-cost offshore services.  However, 2008 will see a slowdown in the 30%+ growth spurt
  6. Procurement Outsourcing (PO) will continue to be adopted at a slow, but steady pace, and will be increasingly bundled onto existing FAO engagements
  7. An economic downturn will accelerate some outsourcing adoption

Gartner says that India remains the undisputed leader in offshore services – but that countries such as China, Russia and Brazil are providing increasingly credible alternatives. Gartner predicts offshore spending will increase by 60 per cent in Europe, and 40 per cent in the US, next year. The analyst’s top 30 locations for offshore services are (from Computing):

  • Americas – Argentina, Brazil, Canada, Chile, Costa Rica, Mexico and Uruguay
  • Asia/Pacific – Australia, China, India, Malaysia, New Zealand, Pakistan, the Philippines, Singapore, Sri Lanka and Vietnam
  • Europe, the Middle East and Africa (EMEA) – the Czech Republic, Hungary, Ireland, Israel, Northern Ireland, Poland, Romania, Russia, Slovakia, South Africa, Spain, Turkey and Ukraine

  1. Millie Wood

    There is a rapid growth of Outsorcing these days as manufactures try to cut cost and maximize profit.*”‘

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