According to a recent report by IDC, robust growth continues in the IT services market, and the utilization of offshore locations still plays an important role. But with that growth, some fundamental changes are occurring, such as the shifting of the traditional IT outsourcing model to one that is an outcome-based model (one based on performance and not just number of people deployed).
One thing that remains constant though is the necessity of an effective global delivery model for successful outsourcing agreements as shown in last week’s announcement of Wärtsilä Corporation of Finland signing a new outsourcing agreement with HP (also see my previous post on “How solid is your global sourcing foundation? “). But even an effective global delivery model is only one of many components that companies employ to transform their complex operating models through outsourcing, as evidenced by a recent post by Kevin Lee of the Everest Group titled, “The Evolution of Next Generation Operating Models in the Energy Industry” published on the Sherpas in Blue Shirts blog.
Last year, more organizations, in more countries, turned to offshore locations to control operating costs and improve margins. This is a complex trend that is here to stay, and one that I strive to stay informed about on a daily basis.
If you have any offshore questions, please feel free to leave me a comment on this blog post. And if there’s an offshore topic, you’d like me to cover in future posts, let me know. In the meantime, check out HP’s Best Shore information to learn more.