Global Sourcing

In the face of the volatility in economic environment and currency, 2011 recorded steady growth for the technology and related services sector, with worldwide spending exceeding USD 1.7 trillion, a growth of 5.4 per cent over 2010. Software products, IT and BPO services continued to lead, accounting for over USD 1 trillion – 63 per cent of the total spend. The year saw renewed demand for overall global sourcing which recorded a healthy growth driven by record contracting activity in small size deals, as clients aim to conserve cash flows and at the same time try out new models and service offerings.

Key Highlights during 2012
  • Global economy sluggish, IT spending growth of 5.4 per cent. However, global sourcing grew nearly 2X of global technology spending in 2011
  • Worldwide hardware spending grew by 7.6 per cent, IT services spend increased by 3.3 per cent, BPO grew by 4.3 per cent, software products increased by 5.6 per cent, while ER&D spend grew by 2.2 per cent in 2011
  • Emerging verticals (such as healthcare, government and utilities), Emerging geographies (such as Asia Pacifi c and EMEA) – highest IT adopters growing nearly twice the mature geographies and verticals
  • The year witnessed a pronounced shift to smaller contracts while mature verticals and segments were growth driver for global sourcing deals
  • While cost and talent still remain essential considerations for global sourcing, there has been an increasing shift to Tier II locations as organisations are going inorganic to add skills
  • Global sourcing landscape is shifting as vendors are becoming more ‘customer-obsessed’
  • Emerging technologies is altering business landscape and adding value