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IT Sourcing

One of the key activities we assist our clients with today is sourcing decision making. Services are the items that are sourced. Processes define how the service will be performed. Clients can decide which parts of the processes in the delivery chain are business critical or proprietary and make informed decisions on how to retain the value added capabilities they can deliver and take advantage of the reduced cost or increased flexibility of those portions to out source.

Flexibility plays an important part in decision making for companies to provide quality services at extended hours. Modern business models around the world are increasingly organized across national boundaries. Global IT sourcing refers to the geographic distribution of different IT activities. These activities can be performed either in-house or outsourced, and serve internal or external clients, or both.

Global IT services out sourcing is expected to increase throughout the foreseeable future. From the perspective of the location where the work is performed, global IT sourcing may also be viewed as an export market. To compete in this new world, contemporary business models adopt a portfolio approach to flexibly access the best sources world-wide of products, services and talent to meet clients’ needs.

For IT services there are many drivers of global IT sourcing such as:

  • The ability to use operations in different time zones, allowing business to provide service and support customers 24 hours a day, 7 days a week.
  • Competition for a large pool of skilled labor (including language skills) and the spectacular decline in telecommunication costs as a result of the introduction of competition in many parts of the world.
  • By establishing an offshore presence, firms may gather additional insight into local markets, which can be used to customize the services offered and provided and improve their competitive positions in those markets.

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