Developing a strong global sourcing and delivery strategy is the top concern of Information Technology (IT) executives in the Asia-Pacific region this year, according to a study published on Monday.
Research agency IDC said global delivery includes functions such as business process outsourcing, IT outsourcing and project-based services.
"It's important for companies because it allows them to benefit from cost arbitrage and economies of scale," The Business Times quoted IDC's Philip Carter as saying. "It allows companies to achieve optimal business outcomes without the restriction of geographic boundaries."
Domestic markets could be slow to gather momentum, particularly in developing nations, said Jenna Griffin, IDC senior analyst.
"Having service providers capable of offering both onshore and offshore services generates a stronger growth trajectory within the domestic market as a whole," she said.
Some of the key challenges that companies face embarking on global sourcing strategies centre around service levels, and ensuring that the desired business outcomes are met, IDC said.
"This makes the selection of both global delivery players and locations vital to the success of the project," Carter, IDC's Asia-Pacific's associate director, told the newspaper.
"The region represents a pot of gold for innovative vendors, but there are also significant pitfalls to trip those who fail to deliver on customer satisfaction and cost efficiency," Griffin added.