Off shore outsourcing to have little impact on IT
Off shore outsourcing to have little impact on IT
Gartner claims that offshore outsourcing will have little impact on the worldwide IT market over the next 10 years, but the changes brought in will be beneficial to companies in many different ways.
Analyst Rolf Jester has estimated that seven percent of $US728 billion spent on global outsourcing contracts will be spent on offshore business by 2007.
Jested said. "We have identified more than 100 changing facets of outsourcing that will determine its direction over the next decade. Outsourcing is undergoing significant change right now. Offshoring and near-shore sourcing is just one of many changes that private enterprise and government agencies must come to terms with.
"It would be smart for IT executives to begin thinking about which scenario they would like to create for their organisation, and compare it to the one that is evolving right now."
He believes that there are two overriding factors that will influence the IT enterprise.These are the adoption of a Real-Time Enterprise strategy, with the aim being to use information to adapt quickly to the constantly changing business environment.
The second involves the types of service that enterprises will outsource from now until 2013, especially whether they outsource whole business processes or just underlying IT functions.
Much of the influence will depend on the IT Inertia of a company. Outsourcing will be likely where the existing IT investments serve to slow down the ability of the business to change quickly enough.
Process islands could evolve. This is a sub-optimal state whereby departments inside an enterprise look after their own business process needs, reducing the need for the CIO and IT staff and therefore increasing the need for offshore outsourcing.
Jester believes that IT-Centric Real-Time Enterprises could make businesses more agile though a strong focus on IT and Virtual Enterprise - where organisations are "real-time" by nature, stick to core business and buy external services for all non-core activities.
Jester also said that buyers will influence the shape of the outsourcing sector over the next 10 years. He also predicts that there will be a significant push towards Business Process Outsourcing, although enterprises "should consider it, that does not mean they should do it."
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