Gartner research vice-president for software and offshore sourcing Partha Iyengar said in a company release that as offshore providers increasingly compete with incumbent global majors, taking business away from them, a competitive response by the majors is giving rise to structural changes in the global services marketplace.
Sourcing IT work worldwide at the best prevailing prices is now becoming the norm for application-related services. According to Gartner, early adopters are actively exploring beyond application-related services, including business process outsourcing (BPO), call centres and infrastructure services.
Gartner estimates that by 2004, all US enterprises would consider global delivery sourcing a top strategic sourcing option. More than 80 per cent of US executive boardrooms would have discussed offshore outsourcing; and more than 40 per cent of US enterprises would have completed a pilot, or would be sourcing IT services through a global delivery model.
The release added that by 2004, 70 per cent of enterprises would selectively outsource applications using a variety of application service providers (ASPs), traditional outsourcers, niche applications vendors and offshore providers.
However, Gartner analysts said enterprises must use structured evaluation and selection criteria or risk engaging with the wrong ASP offering the wrong level of service.
Gartner vice-president & research director for offshore sourcing Rita Terdiman added, as enterprises evaluate the leveraging of offshore resources, understanding the associated risks and developing mitigators will be essential to the long-term success of the strategy.