Offshore Outsourcing of IT Infrastructure Management to Be the Next Big Wave

    August 26, 2004

Offshore outsourcing of IT infrastructure management is likely to be the next big wave, according to results of a survey conducted by Wipro Technologies recently.

According to the online survey of 145 executives from various industries, more than 30% of the respondents were planning to offshore their IT infrastructure in the next 12 months and another 30% were researching or evaluating the same with active interest. Interest in offshore BPO was also gaining more ground with 34% of the respondents planning to offshore some of their business processes in the next 12 months. Traditional application development and management will continue to lead in organizations’ offshore outsourcing plans with more than two third of the respondents planning to offshore them in the next 12 months.

The study found that offshore outsourcing was increasingly becoming a strategic initiative at global organizations. At 38% of the organizations, offshore outsourcing was a now a CxO led initiative. An overwhelming majority of executives (87%) polled said that their offshore outsourcing spends would increase this year. On an average, organizations were likely to increase their offshore outsourcing spends by 34%.

“The findings confirm that offshore outsourcing has now become mainstream, there is a clear indication that various global organizations have gained confidence to offshore new and complex service lines like IT Infrastructure management and critical business processes” said Sudip Banerjee, President – Enterprise Solutions at Wipro Technologies. “And Wipro, being the largest offshore provider of IT infrastructure management and BPO services, is best placed to capitalize on this new wave”.

In the offshore outsourcing space, entry barriers were falling and customers were ready to add new vendors. A sizeable number of respondents (40%) were keen on evaluating/initiating relationships with new vendors. Organizations with higher maturity in offshore outsourcing or those planning to offshore newer service lines like IT infrastructure management / BPO were more likely to do so.

Wipro has been recognized by IDC and Forrester Research as the leader in the offshore outsourcing space for its service breadth, partnerships, processes, technical depth and ability to move up the value chain, is best positioned to leverage the increased interest by organizations worldwide in strategic outsourcing

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