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Lethargic global sourcing expected in 2012

By: Kristie Thong, Global
Published: Dec 19, 2011

GLOBAL SOURCING   RESEARCH

Global - A slow momentum is expected for global sourcing activities next year due to unstable macroeconomic conditions worldwide, but things will begin to pick up by the end of the year, a new survey predicted.

Everest Group's 2012 Market Predictions report pointed out that 2012 will see an increase in attention towards global sourcing management and consolidation initiatives as companies seek more leverage from existing channels across sourcing lines.

"The demand environment for service providers will remain tentative in 2012 given the watchful approach of global buyers, and optimisation will be a strong focus for organisations looking to extract more value from their sourcing models," Eric Simonson, managing partner of Research said in an article by Supply & Demand Chain Executive.

The survey predicted BFSI will continue to be the dominant industry segment with verticals such as healthcare of MDR continuing to witness increased traction.

While North America will continue to be the dominant buyer geography followed by Europe, Asia Pacific will see growth above industry average.

Companies will continue to pursue new sourcing locations due to talent, cost, and risk diversification-related issues.

It also believed companies will continue adopting hybrid captive/third-party sourcing models and make efforts to improve captive value by focusing on high-value processes.

"Despite the downside effects from economic conditions, buyers will see service providers bring forward new concepts to remain competitive. We also expect to see momentum in emerging areas such as social media, mobility, green IT, and cloud computing that will foster innovation and evolution of new specialty providers," Simonson said.

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