Rise of new competition competition in the offshore industry is becoming much more diverse, with many Western vendors having established globally sourced operations that can match or in some cases beat the leading Indian vendor offerings. Moreover, as the offshore model expands into new geographies and the requirement for depth of expertise continues, we expect to see many more opportunities for smaller IT services players globally. Harvey Nash is a perfect example, having beaten Wipro and India-based Aricent for the Alcatel-Lucent deal.
Ultimately, we see these trends supporting the global sourcing industry to become deeper, in terms of expertise and strategic relationships, and broader, in terms of spread of geographic reach and services provision. And its all part of global sourcing becoming the standard practice amongst IT services vendors. Were not there yet, but deals such as these two, and the many more we expect in 2009, are accelerating the progress.
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