Friday, September 17, 2004

Offshoring Goes Mainstream

vnunet.com reports Unisys chief and others foresee easier outsourcing ahead and indicators suggest offshore outsourcing has entered the mainstream as global organisations gain confidence offshoring new and complex services.

Brian Hadfield, managing director at the IT services firm in the UK, said the future of outsourcing would see a move to packaged offerings and away from one-off, specialist deals. "We believe the ability to take an outsourcing venture and grow it into a utility is important," he said. "You get economies of scale, which can be passed on to the customer."

Hadfield predicted that demand for outsourcing would grow in a number of areas, including supply chain management, logistics and customer relationship management. "You'll see a transition from outsourcing the back office to the middle and front-end. People will start taking a look at outsourcing these activities."

Hadfield also anticipated growth in offshore IT outsourcing. "We do some offshore work and have made investments in this area," he added. "The ability to lower costs by doing work offshore will be attractive to customers and suppliers." However, firms are likely to be selective about the projects and activities sent abroad, he predicted.

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