Aglobal online survey, conducted by Wipro during April–May 2004 polled 145 senior and mid-management executives across industries. It reveals that the global sourcing mix for most organizations is evolving to include multiple and more complex service lines, with IT infrastructure high on the global sourcing list. This trend is spurring companies to look for  partners with wider capabilities. Excerpts from the survey:

1. Global Sourcing Is Increasingly a CXO-led Strategic Initiative

• 90 percent of respondents were actively engaged in active global sourcing or evaluation

• With 38 percent of the organizations polled, global sourcing is a CXO-led strategic initiative

2. Beyond Applications Development: Service Lines Considered for Global Sourcing are Increasing

• More than 54 percent of respondents were willing to globally source more than three service lines, indicating maturity in the global sourcing model and increased interest in newer service lines
• Traditional applications development and management continue to lead. Newer service areas like IT infrastructure management, critical business processes, and vertical domain solutions are increasingly being considered for global sourcing

• Close to 50 percent of organizations planning to offshore multiple service lines in the next 12 months were likely to consider new vendors. There is a need for one-stop partners with wider portfolios

3. Focus on Global Sourcing of IT Infrastructure Services Evident Across Industries

A look at how the global sourcing of IT infrastructure will fare:

• Will source globally in the next 12 months: 30 percent

• Evaluating/researching it actively: 30 percent

In effect, more than 60 percent of the organizations were actively considering global sourcing of IT infrastructure in the near future. It is likely to be the next big wave

4. Spends On Global Sourcing Expected To Surge

• Over 87 percent of respondents planned to increase the IT global sourcing spends in the next 12 months

• On an average, organizations were likely to increase their offshore outsourcing spend by 34 percent

• The big spenders: Percentage of respondents planning to increase spends:

• Manufacturing: 80 percent. Of these, 50 percent plan to outsource IT infrastructure

• Pharmaceutical: 75 percent. Of these, 75 percent plan to outsource IT infrastructure

• Telecommunications: 87 percent. Of these, 17 percent plan to outsource IT infrastructure

Nirav Desai, manager-strategic marketing, Wipro
Gaurav Marya, senior executive-strategic marketing, Wipro
Misal Singh Khundia, senior executive-strategic marketing, Wipro
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