Trends & Vision Newsletter

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EDITORIAL: THE IMMINENT SHIFT TOWARDS RESULTS ORIENTED OUTSOURCING ENGAGEMENTS

alejandro_camino

A shift is taking place in an IT services market that has grown accustomed to Time & Materials pricing models. Effort based pricing and labor arbitrage models have shown signs of true fatigue. Continued currency revaluation of the Rupee, the Euro and the Brazilian Real against the US dollar; raising salaries, combined with increased attrition in traditional offshore destinations, have significantly eroded the benefits of salary arbitration. Organizations are revising their sourcing strategies.

Outcome based outsourcing contracts are now in the crosshairs of sourcing organizations – moving away from time-sheet based models. In parallel, many organizations are increasingly evaluating alternative sourcing locations.

In 2007 we added a record number of clients to our nearshore services portfolio, most of them are mature global services buyers looking at nearshore alternatives either to diversify or complement their India component, thus solidifying their global sourcing efforts.

Together, these trends will rapidly drive the maturity of the vendor-client relationship model into the next level; characterized by results-driven engagements delivered by a geographically dispersed global pool of talent. The model hedges country risk, expands the talent pool and increases efficiency.

We have gathered a set of resources around the topics of Results Driven Application Outsourcing and Global Sourcing. These resources include a series of white papers, free independent reports from Forrester, and on-demand webinars featuring respected analysts in the sourcing and vendor management fields.

We hope these tools serve you as guideline, or benchmarking tools to take advantage of the imminent shift.

I’d love to hear your comments or suggestions regarding this newsletter. I can be reached at alejandro.camino@softtek.com.

Best Regards,

Alejandro Camino
Softtek VP of Marketing & Communications
Softtek Though Leadership Officer
alejandro.camino@softtek.com