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January 09, 2007

Near Shoring To Become Norm in ‘07

By Priya Jestin, Staff Writer

Luxoft, one of Russia’s leading providers of IT outsourcing development and services to companies like IBM, Dell, Deutsche Bank, T-Mobile and others, recently issued its predictions for the IT outsourcing industry in 2007. According to Luxoft, no one approach – in-house, on-site, ODCs or captive models – will be on top in 2007. Each company will access its available global resource and skill pool and choose a variety of outsourcing and in-house combinations to reach its desired business and technical goals. Outsourcing, say Luxoft officials, will become as commonplace as Six Sigma.

This bit of news should bring a lot of cheer. It is expected that in 2007, all forms of security will make it on to the shortlist for any successful outsourcing engagement – system, physical, staff and disaster recovery. Clients will increasingly demand excellence on this front. Also, companies will increasingly look to near shore development solutions to round out its outsourcing portfolio. In 2007 there will be increasing demand for outsourcing resources in Europe, Eastern Europe and Canada but this phenomenon will be seen with resources around the globe.

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