Reflections: Sid Pai, TPI International

"The deals that are going directly to offshore companies have increased tremendously in size and scope." -- Sid Pai, partner, TPI International

Q. What was last year's most important industry development and why?
The rise of offshore service delivery as a true alternative. The deals that are going directly to offshore companies have increased tremendously in size and scope. For example, the deals by ABN Amro and Pearl. Offshoring is now truly mainstream as a solution.

Sid Pai, a partner at outsourcing consulting firm TPI International, predicts more businesses will choose to use wholly owned captive operations in offshore locations

What will be the top 3 technology trends/issues in 2006 and why?

  1. Increased use of wholly owned captive operations in offshore locations as a viable method for the delivery of technology and business process services, as opposed to 'arms length' outsourcing transactions for services.
  2. Increased number of sourcing transactions, but with a fairly sizeable drop in total contract values. This is largely due to the rise of offshoring.
  3. The use of 'best-of-breed' providers in technology services contracts as opposed to the use of one large vendor

In a October 2005 report, Gartner predicted that by 2011 at least 75 percent of IT organizations will change their role, at least 10 percent will be disbanded and 10 percent more will be relegated to commodity status. How do you see Asia's IT organizations evolving?
Asia's IT organizations will evolve differently, especially in China and India where the emphasis is currently on increased automation and spending on information technology. As these economies grow, they will need significant investment in their supply chain, customer relations management and ERP (enterprise resource planning) capabilities, and they will therefore become large markets for IT services.

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