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Three-quarters of businesses say outsourcing is the norm

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."


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