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Key Factors for the Use of Offshore Resources by Canadian Businesses

Product Type: Market Research Report
Published by: IDC
Published: February 2004
Product Code: R104-14658
Description
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."
Table of Contents


Table of Contents


IDC Opinion


In This Study


Methodology


Situation Overview


Introduction


Figure: Proportion of Survey Responses Outsourcing and Using Offshore Resources


Applications/Processes/Activities


Figure: Current Use of Outsourcing Services by Application/Process/Activity


Outsourcing activities


Figure: Activities Sought When Outsourcing IT Services


Offshore outsourcing drivers


Figure: Drivers of Offshore Outsourcing


Attributes


Figure: Attributes Driving Choice of Offshore Outsourcer


Concerns/Objections


Figure: Concerns About Using Offshore Outsourcing


Lessening Concerns/Objections


Figure: Objections About Offshore Outsourcing Lessened if Provider Headquartered in Canada or USA


Future Outlook


Essential Guidance


Actions To Consider


What is driving the use of outsourcing services?


How do the drivers align with process outsourcing?


How would offshore services affect these offerings?


What are the inhibitors to offshore service provisioning?


How do these drivers align with business process outsourcing?


Impact on Canadian providers


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Related Research


Synopsis




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