IDC’s New Program Maps the Offshore Outsourcing Opportunity

FRAMINGHAM, MA — OCTOBER 30, 2000 — Dedicated to providing its clients with the foremost global market insight and intelligence available in the industry, IDC today announced the launch of IT and Offshore Outsourcing Strategies, a research program that examines how service providers are positioning themselves to compete in both the traditional IT and evolving offshore outsourcing markets. The program provides comprehensive analysis of these markets (e.g., trends, drivers, market sizing, vendors, and contract signings), to help service providers understand where their hottest opportunities lie and who their competitors are and will be.


"The offshore outsourcing market has evolved far beyond legacy systems maintenance and assorted low-end development work," said Cynthia Doyle, manager of IDC's new program. "Today, many offshore service firms have the skills and expertise necessary to deliver cutting-edge ebusiness solutions, including high-end development work for Web-based and enterprise applications. No longer perceived as high-risk, low-quality 'software sweatshops,' offshore firms are poised to become strong competition for U.S.-based IT service firms."

IDC's IT and Offshore Outsourcing Strategies program tracks the growing importance of the offshore model in the IT outsourcing market. According to IDC, the market opportunity for offshore providers is huge. India, for example, is currently the most mature region for offshore development work. India's software export market is expected to reach $4 billion by the end of 2000, with 60% of that spending coming form the United States; India's goal is a $50 billion software export market by 2008.

In addition to identifying which countries have emerged as offshore regions of expertise, IDC's IT and Offshore Ourtsourcing Strategies program will detail accelerators driving these markets during this millennium. Subscribers of this program will gain valuable insight into both existing and emerging competitive trends that will help them make sound business decisions and succeed in both the traditional IT and evolving offshore outsourcing markets. The program addresses several key questions, including:

Where are the IT and offshore outsourcing services markets heading, and what are the key market drivers and trends?

Which customer segments will increase their demand for IT and offshore outsourcing services at the fastest rate?

Where are large outsourcing deals being signed, what types of services are being included, and which vendors are winning these deals?

Why are high-tech companies partnering with offshore service providers, and how are they successfully leveraging their offshore relationships for

competitive advantage?

Which regions of the world will join or replace regions such as India as dominant markets for offshore outsourcing?

"The offshore outsourcing model is changing the competitive landscape for IT services. IDC's IT and Offshore Outsourcing Strategies program will help service providers identify and understand both existing and emerging competitive trends to succeed in this new marketplace," Doyle said.

For more information about IDC's new program, contact Beth Freedman or Lisa Bloom at 508-872-8200 or or

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in- depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at

IDC is a division of IDG, the world's leading IT media, research and exposition company.

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