By 2004 over 40% of US enterprises will either have completed
some type of offshore outsourcing pilot for their IT services, or
will actually be sourcing IT services through a global delivery
model, such as near shore and offshore, according to a report
released on Monday by industry analysts Gartner.
Sourcing IT work from anywhere in the world at the best prevailing prices is now becoming mainstream for application-related services. According to Gartner, those companies that are already familiar with the process are now looking to extend the range of services dealt with overseas, including business process outsourcing (BPO), call centres and infrastructure services.
Gartner also predicts that, by next year, all US enterprises will have to consider global delivery sourcing as one of their top strategic sourcing options. It reckons that 80% of US executive boardrooms will have by then at least discussed offshore outsourcing.
Partha Iyengar of Gartner's software research group predicts a new order of 'top tier' global IT service providers, "some of whom will be the current global leaders and some will be from the ranks of the Tier 1 Indian service providers."
The prediction comes despite the growing antipathy displayed towards offshore outsourcing among workers and unions in the US and Western Europe. Indeed four US states are now considering legislation designed to ban the practice in an effort to protect the already battered IT jobs market.
A report by Gartner earlier this month blamed the downturn in the economy, and predicted that, while the outsourcing backlash is expected to continue in the short term, it will fade as soon as the economy picks up.
