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The Future of Outsourcing: Big Changes Ahead

 
 
 
 
 
 
 
 

The IT outsourcing landscape is evolving by the day. How are you responding? Navi Radjou, a vice president with Forrester, offers a self-described Pollyanna-ish take on the future of Bangalore.

At a recent event held by the World Economic Forum, Radjou headed a team charged with envisioning an optimistic future for the Indian city and popular outsourcing target. His take:

We envisioned Bangalore in 2025 as a global innovation hub not only in IT, but also in clean energy, bioengineering and medical devices (e.g., next-gen pacemakers), and even space technology.

On the flipside, a separate group envisioned a different reality, where Bangalore's emphasis on innovation turned it into a sweatshop, ultimately forcing Indian services firms and multinationals to other Indian cities.

For IT leaders, this futuristic look is instructive. As companies continue to seek cost-cutting initiatives while driving productivity, outsourcing has become a no-brainer.

But the outsourcing landscape is changing drastically, evidenced by our recent chats with Boston Consulting Groups' Hal Sirkin and Harvard Business School IT guru Warren McFarlan.

Sociopolitical issues, cost increases and priorities back home are influencing CIOs' outsourcing decisions like never before. And if you haven't noticed them yet, it's time to open your eyes.

So tell us, IT executives: what's your plan for outsourcing in the future? How will these issues affect your planning and execution?

 
 
 
 

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