Asian firms tap on the best offshore

Enterprises will focus on global delivery and sourcing in 2008, and the trend will spur growth in emerging markets, says research house IDC.

Asian enterprises will focus on global delivery and sourcing this year to achieve "optimal business outcomes", according to an IDC report.

The research firm said sourcing strategies of organizations in the region, excluding Japan, are becoming more driven by the availability and access of skills rather than purely on cost considerations. In 2008, companies will increasingly look toward blended offerings from more than just one location.

In a global delivery model, a company sets up offshore centers in different parts of the world, to tap on the best and most cost-effective resources for the business.

Jenna Griffin, senior analyst for global delivery research at IDC Asia-Pacific, noted "strong" potential for emerging markets as a result of the growing emphasis on global delivery.

"Domestic markets could be slow to gather momentum, particularly in developing nations," she said.

"Having service providers capable of offering both onshore and offshore services generates a stronger growth trajectory within the domestic market as a whole. Service providers benefit from economies of scale, and the creation of jobs means that the overall market benefits from greater economic prosperity."

IT service players, Griffin pointed out, would increasingly be looking to grow as well as move up the value chain to tap on the opportunities in the region. But they need to ensure they can juggle resources with customer expectations, she warned.

"The region represents a pot of gold for innovative vendors, but there are also significant pitfalls to trip those who fail to deliver on customer satisfaction and cost efficiency," said Griffin.

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