Offshoring, Study
Offshoring not a big phenomenon – study
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According to a recent study done by Forrester Research, despite the rising trend of offshoring, the reality is that most firms are either doing nothing or just starting to look at locations like India, Russia, or Philippines.
According to John McCarthy, Group Director, Forrester, more than 60 percent of the Fortune 1,000 companies have no offshore relationships and actually less than 5 percent of the Fortune 1,000 companies are actually ‘exploiting’ the full potential of outsourcing.McCarthy adds that a new level of investment and higher level of sophistication is required, especially in the area of marketing and services segmentation, from offshore players to attract more companies.
The research further states that 25 to 30 percent of Fortune 1000 have offshore experience and relationships with offshore vendors, but offshoring is not a key element of their overall IT strategy or spending plans. With offshore spending often representing less than 20 percent of their overall IT third party services budget.
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