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Services Globalization 2006 Predictions

    Online News published in DMReview.com
December 23, 2005

neoIT issued its annual predictions for services globalization industry.

In 2006, neoIT sees two major trends dominating the growth of the global services industry: the advent of true "services globalization" as outsourcing moves beyond mere cost savings to the full-scale leveraging of the unique capabilities of supply markets to source IT and back office services. The other major trend is the enhancement of "services sourcing options" as service providers mature and as new supply locations emerge. As the global services sourcing platform becomes more sophisticated and complex, this will necessitate the presence of global sourcing experts in each organization.

India is expected to maintain its supplier leadership role in the U.S. market but will be challenged in some areas by the increasing strength of the Philippines, Brazil, Mexico, Israel, Russia, China and other aspiring supply markets. China will remain the most preferred sourcing location for Japanese clients, similar to what Czech Republic, Poland and Hungary is for Western European clients. neoIT predicts that the extent of China's influence on sourcing options for the U.S. market will be lower than widespread market predictions.



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