Globalisation of IT services and the increasing availability of hosted enterprise applications are dramatically changing the face of outsourcing, a new book from the British Computer Society argues.
The book, Global Services: moving to a level playing field, urges IT managers and business executives to adapt to new business models for outsourcing.
Co-author Richard Sykes said: "The consumerisation of IT as services accessed over the internet by the likes of Google, and the globalisation of the IT services markets by the offshoring giants such as India and now China, is radically rewriting the established business models of outsourcing.
"Traditional offshore is developing into global service delivery from local centres of excellence, and the scope of those services is rapidly widening to include everything from engineering to medical services.”
He added that online delivery of sophisticated business services by providers such as Salesforce.com offered an ever wider range of service sourcing options.
Companies should take the new sourcing landscape into consideration in their planning, Sykes argued. “By acknowledging this now, forward planning and taking action, businesses can stay ahead of the game,” he said.
Co-author Mark Kobayashi-Hillary said the book was a “call for change” in he attitudes to outsourcing and global services. “We rejected the strategy that tomorrow is little more than a development of today and chose instead to examine the idea that today we have a world where intellectual services can be delivered from anywhere in the world,” he said.
“It's not so much a question of focusing on core corporate competence, there are entirely new business models being created because of the robustness of the Internet as a delivery platform.”