Is the global outsourcing industry in for a no-holds-barred competition?

November 2009
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Since its inception in 2004, Duke University’s Offshoring Research Network (ORN) project has tracked and reported on the growth of global sourcing for business and information technology (IT) services. Central to these studies has been the observation of aggressive growth of outsourcing and offshoring demand and the shift from the dominant labor arbitrage tactic to a game-changing global sourcing strategy. The ORN 2007/08 annual buy-side survey report, Offshoring Reaches the C-Suite1, documented the importance of a global sourcing strategy for companies accessing capabilities and talent outside their home country. On the supply side of outsourcing service, the ORN 2009 Service Provider Survey documents the transformation taking place on the provider side. The outsourcing industry is being transformed as new entrants around the world rapidly emerge, as countries reshape their national policy to obtain a share of its value, and as incumbent providers attempt to defend their existing market and expand into new markets in order to keep up with the increasing demand and intensified competition.