Global Delivery Models Increase in Sophistication; Suppliers Attack Costs

Filed in archive Outsourcing News on December 22, 2005

Leading advisory firm neoIT has issued its predictions for the global services industry in the next year. The company names two major trends that will dominate the industry in 2006.

First is the arrival of "Services Globalization". Outsourcing will go beyond cost savings as it moves into full scale leveraging of the unique capabilities of supply markets to source IT and back office services.

Second is the enhancement of "Services Sourcing Options". Service providers will mature and new supply locations will emerge. Global sourcing experts will become a necessity as global services sourcing becomes more complex.

In addition, neoIT predicts that India will maintain its supplier leadership role in the US market, while China will still be the preferred sourcing spot for Japanese clients. Other countries such as the Philippines, Brazil, Mexico, Israel, Russia will challenge India's leadership as well.

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