Monday, August 20, 2007

According to a survey conducted by Datamonitor, a majority of respondents agreed to outsource their infrastructure services to Eastern European countries, while about 38 percent respondent agreed to outsource their infrastructure services to India. About 15 percent respondents preferred China, while about 9 percent preferred the Latin American countries. Among the key findings, about 50 percent respondents revealed to outsource their infrastructure services to a Western services supplier having worldwide sourcing capabilities. About 35 percent plan to outsource such functions to their captive operations, while only 12 percent plan to outsource to offshore-based third-party service providers.

In addition, about 47 percent respondents revealed that they are expected to generate cost savings between 10 percent and 20 percent by offshoring such functions as against managing their IT infrastructure onshore, while another 41 percent expected savings to be between 20 percent and 40 percent. According to the survey, about 80 percent German respondents cited Eastern Europe as their preferred offshoring location, while about 21 percent respondents agreed to opt for multiple offshore locations to minimize risk. Moreover, security was cited as the prime concern by respondents who were reluctant to offshore their IT infrastructure in the near future.

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