The global IT outsourcing (ITO) market has increased each year since 1989, when global ITO was only a US$10 billion market. On conservative estimates, by the end of 2014 it exceeded US$700 billion. On some estimates, the market will see a 4.8% compound annual growth through to the end of 2018 as more is outsourced and new service lines and delivery locations are added. Looking at the global business process outsourcing (BPO) and IT services market by region, in 2013 North America was 42% of the market, Europe, Middle East and Africa (EMEA) 34%, Japan 10%, the rest of Asia Pacific 9% and Latin America 5%. However, for the first time, in 2014 growth in outsourcing services in Europe exceeded growth in the USA. Offshoring and offshore outsourcing are certainly expanding. By 2015, over 125 offshore locations have been providing ITO and BPO services for more than five years and are seeking to mature their service capabilities. Furthermore, today clients are facing a large variety of alternatives to choose from when making sourcing decisions, which means that they need to take into account a number of considerations to be able to make the right decision. Therefore, it has become increasingly important to understand the phenomenon, not least as a basis for suggesting what directions it will take, its impacts, how it has been conducted and how its management can be better facilitated.
KeywordsCloud Service Supplier Selection Service Line Service Capability Offshore Location
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