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The IT service provider market is experiencing significant changes. Until now, the market was characterized by two types of service providers: management consultants and systems integrators.

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The economic slowdown in North America and Europe has made 40 per cent of the large businesses cut their overall IT budgets.

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Azim Premji, Wipro chairman and one of the richest people in the world, with a wealth put at $12.7bn, came to Romania for one day at the end of last week, to visit the BPO centre he owns in Bucharest.

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Less than half of the companies that have begun moving general and administrative work to offshore offices said they were satisfied with the new unit’s ability to innovate, a new Hackett Group survey finds.

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While reading outsourcing horror stories may be somewhat entertaining, especially if it hasn’t happened to you, it’s even better to learn from the mistakes of others. That’s why InfoWorld talked to industry experts to summarize their best advice, based on their own experience and their clients’ experiences.

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The Everest Research Institute’s Market Vista: Q2 2008 Report on global outsourcing and offshoring revealed that, despite the unstable economic conditions in the United States, the outsourcing market continues to stably grow with help from European investments.

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Optimus, an IT equipment producer and distributor, expects to achieve a net profit for the current year, according to a statement by Tomasz Lewandowski, the company’s president.

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UCMS Group EMEA and HeziHold of Hungary today announced that the two companies have formally joined forces to create an expanded organization focused on providing regional Business Process Outsourcing services and Software On Demand solutions, including HR, payroll and finance & accounting.

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Dr. Christian Baader, 44, is vice president of BPO Strategy, Market Development and Marketing for SAP, the enterprise application software provider. He is one of the architects of SAP’s unique BPO partnering model with service providers, which began to get traction in 2004.

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Substitutes like business service outsourcing and global delivery model (GDM), necessitated by the changing business model of IT firms, are likely to replace them over the next seven years.

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