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INDUSTRY NEWS


15 May 2008

ICT industry 'to become borderless by 2015'


The information and communications technology (ICT) industry will become a 'borderless state' by 2015, as organisations increasingly come to source their technology from around the world, with less regard for the country of origin of vendors, it has been revealed.

According to research from Gartner, the erosion of traditional borders in the ICT industry is the latest stage of globalisation, and is a result of social, political and financial factors converging.

"Rapid IT growth in emerging nations is removing borders in business that will impact everyone," said Partha Lyenga, vice president at Gartner.

"Organisations must learn to trade and compete with these rapidly transforming, highly organised companies, which leverage low-cost, highly skilled labour sources. If they do not, they will be at a significant competitive disadvantage."

Gartner explained that chief information officers (CIOs) will be presented with many opportunities for growth by the 'borderless state', but warned they will face significant challenges in developing the governance to effectively manage this new environment.

Recently, sourcing advisory firm TPI published first quarter results for the global outsourcing market, revealing that Europe, the Middle East and Africa now account for 70 per cent of total market value.

© 2006 Adfero Ltd.

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