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neoIT predicts business transformation trends
The key trend for 2007, neoIT predicts, is business transformation,
which global companies will leverage to improve time-to-market, gain new business,
standardize processes and significantly lower costs.
On the supplier side the report informs competitive forces
are leading to increased supplier sophistication. Also, acquisitions will
be a continuing trend in 2007 and venture into services that demand a significant
onshore presence. Geographically, new locations are emerging, although India
will continue to lead the supplier market, with Europe showing strong growth.
The European market for global services is expected to grow at a faster rate
with European companies offshoring to India, China, Philippines and other lower-cost
locations. This again depends on the language and cultural-dependence of the
particular service.
- Indian tier-I cities will continue to
grow at a continued pace
- Russia will emerge as a strong contender
in the IT outsourcing market with growth of about 40-50 percent
- Billing rates are likely to go up amongst
the tier 1 suppliers by two to three percent.
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