REPORT: 'Global Delivery Strategies: it's not just size that matters'
08/02/2008
Offshore delivery vendors facing structural challenges

For immediate release, 6 February 2008. Western and Eastern IT services vendors are wrestling with their internal processes and organisational structures to meet client demands for innovation and higher quality from low-cost'offshored' services, according to a recent report by Ovum, the London-based analyst and consulting company.

The report, 'Global Delivery Strategies: it's not just size that matters', reveals how IT services vendors are re-structuring their approach to offshore delivery, sales and management to build a new generation of Global Sourcing practices.

"As offshore clients begin demanding quality and innovation over low prices and resource scale, vendors are faced with a significant challenge to re-structure the way they deliver and sell in a global sourcing context," says Samad Masood, Ovum analyst and author of the report. "Getting this new phase right will make or break the IT services vendors' aspirations for offshore growth over the next two years and beyond."

The report is based on research with the leading US, European and Indian IT services vendors with offshore services operations and reveals the following key challenges for IT services vendors:

* re-balancing sales teams and responsibilities between on and offshore geographies to improve client relationships and innovation development

* investing in new processes and automation to support unified culture, improved responsiveness, innovation and greater efficiencies

* managing the human resource issues implicit in globalisation and offshoring in order to balance costs with the availability of skills and experience

* communicating 'next-generation' offshore propositions effectively, internally and externally, so as to differentiate your proposition in this crowded market.

The report provides advice and examples of how vendors can improve in the following areas to meet the challenge of today's global sourcing market:

* effective selling: ensuring sales staff are fully integrated into the global sourcing process and provided with the support to perform at their optimum

* effective delivery: managing the delivery process across multiple countries while meeting expectations, maintaining a lower cost base and supporting growth

* generating innovation: developing the structures and processes to proactively generate innovation that can improve service to the client

* up-sell and cross-sell: selling more services into an existing client base by using offshore services as an initial foothold

* building a shared culture: how building trust and a strong unified culture, and the ability to communicate differentiation, are key to success.

"Global sourcing represents a 'sea change' in the IT services industry. IT services vendors must mirror that change within their businesses if they are to stay afloat. Solving just one or two of the challenges listed above is not enough; most vendors require a holistic change to their business to succeed in the long term in the global sourcing context," says Masood.

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For further information

For more information or to speak with Samad Masood, Senior Analyst at Ovum and author of this research, please contact Maria Di Martino, maria.dimartino@ovum.com, or a member of our global PR team listed below.

About Ovum

Ovum's primary activity is providing value-added advisory services and consulting to retained and project clients. The company acts as a well-respected and trusted source of industry data, knowledge and expertise on the commercial impact of technology, regulatory and market changes. Ovum engages in continuous research and industry analysis to determine market dynamics in its specialist sectors.

Ovum has developed long-standing relationships with many of its corporate clients, which include major international blue-chip companies such as Alcatel-Lucent, AT&T, BT, Cable & Wireless, Cisco Systems, Deutsche Telekom, Fujitsu, HP, IBM, Microsoft, Telstra and Vodafone.

Ovum is part of the Datamonitor Group, which is wholly owned by Informa plc.

Ovum's PR contacts

EMEA:

Maria Di Martino

Tel: +44 (0) 20 7551 9238

Email: maria.dimatino@ovum.com

North America:

Sara Kaufman

Tel: +1 617 722 4602

Email: sara.kaufman@ovum.com

Asia-Pacific:

Tanisha Kuckreja

Tel: +61 3 9601 6723

Email: tanisha.kuckreja@ovum.com