| Outsourcing relationships and destinations are changing, | | | | and familiarity as well as the manpower boost of |
| and vendor management is as important as ever, | | | | outsourced resources,” added the Russian firm. In |
| according to new analyst reports. | | | | particular Eastern Europe and Canada are noted |
| Russian outsourcing provider Luxoft, said outsourcing | | | | destinations. The Russian outsourcing industry |
| vendor and client relationships are evolving into | | | | escalated to over $1bn from 2006 to 2007, Luxoft |
| partnerships with clients now seeking increased value | | | | said. |
| from vendors. Vendors are expected to deliver | | | | The NOA said the global delivery model is likely to |
| innovation and expertise to client’s business | | | | move beyond India, citing the often said explanations of |
| processes, Luxoft said in a report predicting | | | | climbing attrition rates and rising Indian salaries. |
| outsourcing trends for 2008. | | | | But news last Friday of Infosys Technologies |
| The National Outsourcing Association (NOA), in its | | | | registering growth of 25 per cent during the third |
| annual survey of upcoming outsourcing trends, said | | | | quarter of this fiscal, indicates Indian providers are |
| Knowledge Process Outsourcing (KPO), which it | | | | challenging analyst’s expectations. |
| defines as the “outsourcing of high value-add | | | | The NOA also predicts more demand for |
| functions,” is likely to increase as trust in business | | | | management skills. In the association’s report, it said |
| process outsourcing grows. | | | | “NOA research shows both end-users and |
| The new trust involved in the outsourcing partnerships | | | | suppliers need staff who understand and have |
| will mean more data is shared and security measures | | | | experience of outsourcing and the outsourcing life |
| become even more essential to deploy, Luxoft said. | | | | cycle”. |
| Luxoft also predicts the growth in popularity of | | | | Gartner also explained the importance of vendor |
| outsourcing for functional and system integration, and | | | | management in its latest analysis of the outsourcing |
| for new outsourcing services to be put on offer in the | | | | market. Kurt Potter, Garner research director, said |
| market that test all areas of system performance. | | | | “although user organisations often have |
| Also, because of increasing competition for skills in | | | | fundamentally sound procurement organisations to |
| some outsourcing destinations, there will be more | | | | initiate outsourcing contracts, for many, their IT sourcing |
| evidence of vendors tapping into the resources of | | | | strategies and governance structures are still |
| other countries and the <a rel="nofollow" | | | | immature, lacking altogether, or misaligned with |
| onclick="javascript:pageTracker._trackPageview(' | | | | enterprise objectives.” |
| outgoing/article_exit_link');" href=" IT | | | | Gartner has forecast the global outsourcing market to |
| Outsourcing,Software Development Outsourcing | | | | grow at a rate of 8.1 per cent in 2008, but said publicly |
| & BPO Services Company</a> must clearly | | | | reported IT outsourcing and business process |
| estimate and propose costs. “This could, for | | | | outsourcing contract values decreased overall by 50 |
| example, bring Russia and India or China together in | | | | per cent in 2007 because the outsourcing market has |
| new and interesting ways,” Luxoft said. | | | | matured and there is less publicity on deals, while |
| Nearshore destinations will continue in their attraction | | | | multi-provider strategies deals are smaller in size. |
| as clients want “the combined benefits of proximity | | | | |