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Analyst firm Gartner has formed a new advocacy council around the issue of IT maintenance contracts and issued a "code of conduct" it wants vendors to follow, actions that could further intensify an already hot topic.
A couple weeks ago I suggested to an executive that China would become major competitive force in voice BPO so Nearshore markets have a three to five year window to get their act together and become really serious about their competitive thrust. He was taken aback by my analysis, given the prevailing wisdom about Indian sourcing hegemony. Now, news today from KPMG that China has overtaken India as the primary destination of outsourcing and shared services for Asia-Pacific companies by generating US$20 billion in the sector.
BANGALORE, 7 JULY 2010 – Europe has always been a difficult market for Indian outsourcers, because some of the countries on the continent have been slow to adopt offshore outsourcing. The market has however worsened this year for the Indians because of a weak euro and tighter IT budgets in Europe, according to Forrester Research.
Perhaps this one should be filed in the 'shouldn't be that surprised' department: a larger proportion of software services will be supported offshore this year, according to a poll of 200 UK IT directors by Spanish IT consultancy group Valueshore.
Software services are set to be the biggest IT capability offshored by UK IT directors over the next 12 to 18 months, as businesses look for customised and packaged software support.