Geosourcing gives IS a global supply chain

Wondering how you can do more for less? You're not alone. According to the Gartner EXP 2003 CIO Agenda survey, IS organizations everywhere are in the third year of relentless cost pressures. All the easy budget cuts were made long ago. The next step is to cut into the muscle - or is it?

There is an alternative. The IT industry is going through one of its periodic upheavals, and this one can actually benefit all CIOs. IT is following manufacturing. The clearest evidence is the arrival of a global supply chain for IS services.

Geosourcing IS is hot because the apparent cost, quality, flexible scale and time-zone advantages appear more compelling than domestic alternatives. But geosourcing comes with cultural, project management, communication, geopolitical and intellectual property risks - not to mention possible backlash from unions and legislators to prevent jobs from leaving the country.

To help you answer the question, Is geosourcing right for you? Gartner EXP researchers interviewed Gartner EXP members active in geosourcing, reviewed Gartner research on offshoring and outsourcing, and held early-findings workshops with members to verify results.

1 Evaluate the benefits and risks

Compared with domestic sourcing, geosourcing offers benefits that increase with your commitment's breadth and depth. But strategic risks increase as well.