In the last few years, enterprise preference for IT service delivery has shifted subtly toward in-house delivery. While IT support remains predominantly outsourced, share of delivery from Global In-house Centers (GICs, or shared services centers) has risen steadily.
Recently, about 400 senior executives of Cognizant accepted the company’s voluntary separation package. Cognizant had announced this programme for directors, associate VPs and senior VPs a few months ago.
Peter Bendor Samuel, CEO of IT consulting firm Everest Group, said industry growth has slowed and the ‘arbitrage first’ segment (traditional IT services) is in secular decline. “When this is added to the pyramid factory model, which requires new freshers to be brought in every year to keep cost low, it results in an excess of more experienced employees,” he said in an interview to ET in May.
Tuesday, October 18, 2011 | 9:00 AM CDT
Global sourcing is a well established phenomenon. The industry has witnessed rapid growth over the past decade, and has now exceeded US$110 billion in annual revenues. The key growth drivers have predominantly been the opportunity for labor arbitrage and the availability of skilled talent pools in offshore locations.
However, given increasing cost pressures in leading offshore markets, such as India and the Philippines, companies are questioning the sustainability of the offshore proposition. In addition, fluctuating currencies are posing challenges to the predictability of arbitrage in many locations, such as Poland and Brazil.
With these dramatic changes in market dynamics, global organizations must take an integrated, multi-location portfolio view in assessing the sustainability of their global services programs.
Everest Group invites you to join us for an insightful, one-hour webinar that will answer the following questions:
Webinar attendees will receive a complimentary arbitrage sustainability diagnostic assessment for three countries from an extensive list including Brazil, China, India, the Philippines, South Africa and more. Please select your preferred countries during the registration process. An Everest Group analyst will supply you with your individualized assessment within two weeks of the webinar. You must attend the event to receive the complimentary assessment.
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