10 June 2011 | Lindsay Clark
Nearly three quarters of offshore outsourcing
market participants believe the trend for globalised service provision will expand.
A survey of buyers and providers of offshore
outsourcing by the Everest ResearchInstitute found
that 72 per cent had plans to grow the scale of their offshore activity.
India continues to be the main focus with
buyers increasing activity there as well as in the Philippines and China.
Meanwhile there was growing interest in Brazil, Poland and Mexico, the study
Despite some wage inflation, India remained
the cheapest destination for offshore outsourcing. The location also had the
advantage of being in the market longest, enabling providers to improve the
quality and scope of their services, said Amneet Singh, vice president global
sourcing with Everest. “They are looking to do more complex services like data
analytics and financial research and trying to drive more improvement from
infrastructure, [such as databases],” he said.
Having demonstrated ability in areas such as
software application development, suppliers were trusted with higher value
work, Singh added. “Because of their experience working with clients, they have
enough confidence to look at some of this more complex work, and from a buyer
perspective they were more confident in these service providers because they
had demonstrated success,” he said.
The study was based on 340 respondents, of
whom 35 per cent were buyers and 56 per cent providers, among others.
☛ Clickhere tofind out more about the report