The IT services market is quickly coming to a crossroad in Canada as the impact
of offshore services providers gradually begins to penetrate all aspects of the
IT services spectrum. At present, a very small percentage of IT service
spending is captured by offshore firms. However, Canadian vendors will have to
monitor the growth of offshore service firms in order to assess the positioning
of competitors in the market.
"Canadian IT service firms will have to regularly ask themselves if and under
what conditions offshore firms become compelling alternatives to local service
delivery options," says Jim Westcott IDC Canada outsourcing analyst. "Those
vendors that ask this question as a matter of course will be able to adapt
quickly to changes and retain an advantageous position."