Friday, September 23, 2005

India a Leader in Global Sourcing – Gartner

According to a study by Gartner, India continues to lead as global sourcing destination. However, despite its dominance, the market research firm warns that organizations should carefully consider their offshore vendors while selecting an offshore partner.

As per the study, although more options for external service provision are becoming available worldwide, India remains the market leader with a majority of essential resources and sufficient technology infrastructure. Gartner also predicts the total global offshore spending on IT services to reach USD 50 billion by 2007.

According to Ian Marriott, Research VP, Gartner, while offshore External Service Providers (ESPs) have advantages in economies of scale and specific areas of expertise, they do not have an immediate solution for correcting flawed outsourcing processes. He added that the cost of labor will remain a major factor in the choice of country destination. However, Marriott advises businesses to also understand and evaluate the costs-versus-risk equation.

Gartner recommends that organizations seeking an offshore provider consider multiple country options around the world. Study revealed that strong governmental support is making China competitive, while Latin America, Brazil and Mexico are increasingly attractive options. In Eastern Europe, the Czech Republic, Hungary, Poland and Russia are among the countries becoming increasingly attractive.

Reported by

No comments: