Outsourcing Trends :

"Gartner Says More Organizations Are Using IT Outsourcing to Enhance Business Performance Rather Than to Just Cut Costs" instead of just to reduce costs.

It was believed and benifited by many organization that outsourcing is not just about a simple labor arbitrage but its also about tapping the geographic knowledge pool,controlling costs and more importantly about enhanced business outcomes and performance.

“Cost issues remain strong, and the shift in buyer expectations toward viewing IT Outsourcing as a means to enhance operations is a sign of a maturing market that has higher expectations from ITO providers,” said Gartner.

In addition to cost competitiveness, providers must create a vision for outsourcing that accentuates other business or IT impact to appeal to a maturing buyer set that will eventually seek more value.

In all major regions, buyers of ITO anticipate increasing their use of ITO in the coming 24 months. On a global basis, 88 percent of organizations that are currently outsourcing anticipate moderate or high levels of outsourcing compared with 67 percent in 2007. Over the next two years, 89 percent of North American organizations anticipate outsourcing at high or moderate levels, up from 67 percent in 2007. About 85 percent of Europe, the Middle East and Africa (EMEA) organizations and 90 percent of Asia/Pacific organizations expect to continue at the same level or increase their outsourcing during the next two years, up from 62 percent and 73 percent in 2007, respectively.

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