Meta’s Offshoring Report
Thursday, October 14th, 2004META Group has come out with a report doing a reality check on the offshore outsourcing trend. Here is the summary:
- By 2006, Most IT Organizations Will Have an Offshore Strategy
- Offshore Outsourcing Market Exceeds $10 Billion
- Average Enterprise to Offshore 60% of Application Work by 2009
- Political Backlash Toward Offshore Not Deterring Market Adoption
For those of us on this side of the offshoring trend, the consolidation of the trend is visible. We see more international names, recruitment ads that shows a distinct increase in the offshoring activity. What is even more interesting is the way the bigger offshore outsourcing firms are going mainstream. It is very clear that Infosys, Wipro and TCS are interested in going beyond the offshore tag, and acquiring capabilities and an image that positions them as total IT solutions providers. This often implies going in for acquisitions, taking on a bigger local workforce in the relevant markets and a determined push away from the low cost perception.
We will follow the moves of the offshore biggies here. Do come back for more news.