Global Delivery Models Increase in Sophistication; Suppliers Attack Costs
SAN RAMON, Calif., Dec. 19 /PRNewswire/ -- neoIT, the leading offshore advisory and management firm for BPO and ITO, today issued its annual predictions for services globalization industry.
neoIT's predictions for 2005 have largely been realized, with leading suppliers focusing on higher-value customer segments and solutions as well as greater cost containment measures. The other area that saw significant development was the steady growth and emergence of new ITO and BPO supplier markets, with China, the Philippines and Central Europe, particularly Poland, Czech Republic and Hungary gaining strength.
In 2006, neoIT sees two major trends dominating the growth of the global services industry: the advent of true "Services Globalization" as outsourcing moves beyond mere cost savings to the full scale leveraging of the unique capabilities of supply markets to source IT and back office services. The other major trend is the enhancement of "Services Sourcing Options" as service providers mature and as new supply locations emerge. As the global services sourcing platform becomes more sophisticated and complex, this will necessitate the presence of global sourcing experts in each organization.
India is expected to maintain its supplier leadership role in the US market, but will be challenged in some areas by the increasing strength of the Philippines, Brazil, Mexico, Israel, Russia, China and other aspiring supply markets. China will remain the most preferred sourcing location for Japanese clients, similar to what Czech Republic, Poland and Hungary is for Western European clients. neoIT predicts that the extent of China's influence on sourcing options for the US market will be lower than widespread market predictions.
The timely neoIT white paper trend predictions are segmented into general trends for the services globalization industry, buyer market trends and supplier market trends.
A free copy of neoIT's neoIT Predictions: ITO and BPO Trends 2006 white paper is available at neoIT's Offshore Knowledge Center at: http://www.neoit.com/Pdfs/whitepapers/OIv3i11_1205_Trend-2006.pdf
About neoIT
neoIT is the leading offshore advisory and management firm. neoIT focuses exclusively on assisting companies in maximizing their returns from the offshoring of both information technology and business processes on either a project or enterprise wide basis. neoIT founder and CEO Atul Vashistha is widely recognized as an one of the industry's foremost authorities on global sourcing and is the co-author of "The Offshore Nation." neoIT solutions deliver results in the form of cost savings, improved governance, reductions in sourcing process time and decreased risks with offshore supplier partnerships or own operations. neoIT's clients for offshore advisory and management include leading Global 5000 firms in financial services, insurance, healthcare, telecommunications, utilities, oil and gas, consumer goods, logistics, retail, entertainment, manufacturing and other industry sectors. For more information, visit www.neoIT.com.
SOURCE neoIT
For further information: Lisa Byrne, Manager, Public Relations, of neoIT, +1-415-221-5018 or lbyrne@neoIT.com
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