Over three quarters of businesses believe offshoring IT is a
norm, according to a report from supplier trade association
Intellect.
In its Offshore Futures Report 2008, intellect found that 77% of
respondents said
offshoring of IT and IT enabled business processes was a normal
business practice. The survey questioned about 100 people including
academics, suppliers, user businesses, and analysts.
"Offshoring has rapidly emerged as one of the most dynamic
influences on UK and global business. For many organisations,
offshoring has become business as usual in a relatively short space
of time," said the report.
But offshoring is changing, and the use of multiple locations as
part of
multisourcing strategies will become more prevalent, according
to the report. This will result in a slowing down in the use of
India as an offshore location and growth in other areas such as
China and Eastern Europe.
The report said 96% of respondents identified an increase in
multisourcing as a major future trend and as a result 94% have an
increased need for in-house sourcing expertise.
Phil Morris, European managing director at sourcing consultant
Equaterra, said businesses are attempting to separate software
development, management and testing, which is leading to
multisourced offshore activities.
He said this adds complexity to the management of offshore
contracts. "They have to define the scope of success and manage it
closely. They have multiple contracts to manage in practically the
same space."