How to Design and Optimize Global Service Delivery Models
The business and information technology services markets are becoming increasingly globalized. The majority of F2000 companies, for example, are now using services delivered out of India or other remote, low-cost “offshore” markets. Concurrently, leading multinational service providers are rapidly expanding delivery capabilities in India and other lower-cost markets, while India-based services firms are building capacity in Western countries as well as other offshore locations. The key issue for outsourcing buyers today, therefore, is how to develop a service delivery model that can fully exploit global sourcing opportunities and is supportive of overall corporate strategies, goals and principles. This goes far beyond determining where to get the lowest price for a particular service. It involves developing a set of integrated capabilities and processes to source, deploy and manage a global service delivery resource network that will likely include captive operations as well as third-party information technology and business process outsourcing services (ITO/BPO).