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Adoption Rate For Offshore Services Doubles Since 2005, According to IDC

  • 05 November, 2008 11:13

<p>Sydney, 5 November 2008. IDC's recent offshore survey titled In the mind of the Offshore Outsourcing customer, how are requirements evolving? has found that the adoption rate for offshore outsourcing services has nearly doubled since 2005. The survey was conducted across 200 organisations with greater than 500 employees.</p>
<p>"With the trend toward modernisation and transformation of the IT environment, offshore providers are well positioned to meet the needs of onshore customers. Apart from the usual drivers mentioned, many organisations have also stressed increasing shareholder value through operational flexibility, cost reduction and improved efficiencies. These drivers coupled with the economic downturn are expected to fuel demand for offshore outsourcing," said Aprajita Sharma Program Manager IT Services.</p>
<p>The survey also found that:</p>
<p>· India remains the destination of choice followed by Philippines . The two major factors that dictated country preference were high quality of English competency and "high quality of technical talent
· As far as top of mind awareness of offshore services providers is concerned, IBM ranked number 1, followed by TCS and Infosys.</p>
<p>The survey report gauges spending intentions on offshore services by companies within the application services, infrastructure services and business process services domain. The report also discusses vertical views of demand for these services within the next 24-36 months.</p>
<p>"As the legitimacy of offshore vendors as IT service providers has gained ground, Indian offshore providers have moved up the value chain from providing lower-level tactical services, such as application maintenance, to more strategic transformative outsourcing/managed services engagements . This does pose a potential threat to the Tier 1 players like IBM, HP-EDS and CSC within their large existing client bases. These Tier 1 outsourcing giants have the highest contribution to the ACV (annualised contract value) and consequently they face the highest restructuring risk for both applications services as well as infrastructure management " Sharma added.</p>
<p>To purchase this report or to request a briefing with the analyst, please contact Sally Taylor-Phillips on +61 2 9925 2234 or e-mail staylorphillips@idc.com.</p>
<p>Ends</p>
<p>For more information please contact</p>
<p>Aprajita Sharma
Program Manager IT Services and Outsourcing
+61 2 9925 2257
asharma@idc.com</p>
<p>Sally Taylor-Phillips
Marketing Communications Manager
+61 2 9925 2234
staylorphillips@idc.com</p>
<p>About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends covering over 110 countries worldwide. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com or www.idc.com.au.</p>
<p>During 2008, IDC is celebrating its 30th birthday in Australia.</p>

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