Introduction

As the global sourcing industry has matured, buyers of ITO services are increasingly faced with a complex portfolio of sourcing models, and a corresponding array of decisions that need to be taken. ITO program managers need to continually revisit existing thinking in an effort to optimize costs, locations, and model-choices. As part of this document, we share learnings from Everest’s ITO strategy benchmarking program. The viewpoint provides insights on some of the common strategic stances adopted by global enterprises towards ITO, as well as the benefits and limitations of each. The authors analyze some of the universal challenges faced by ITO programs, such as continuous cost optimization, risk management and driving change throughout the organization. Based on the evidence available, the authors discuss the interrelated nature of issues, and how organizations can benefit by adopting a holistic, KPI-based approach towards ITO strategy.