Globalization Is Expected to Increase despite Economic Conditions: New neoIT and Goldman Sachs Research Highlights Executive Perspectives toward Globalization

Business Credit, June 2008 | Go to article overview

Globalization Is Expected to Increase despite Economic Conditions: New neoIT and Goldman Sachs Research Highlights Executive Perspectives toward Globalization


Corporate investment for both information technology and business process services is expected to continue across nearly all market segments and economic conditions. Executives indicated that the reallocation of internal spending toward global services will continue for applications and increasingly include infrastructure management and business processing services.

"Clients continue to look for cost savings. These savings come from a combination of labor arbitrage and efficiency improvements," said neoIT CEO Eugene Kublanov. "Organizations that fail to keep up with change will increasingly fall behind their competitors. Many industries will undergo fundamental changes to cost structures in the next few years by leveraging globalization."

The report, The Global Services Confidence Index: Key Industry Observations, provides timely insights into the strategies that companies are deploying to not only navigate through economic challenges, but also to establish strategic advantages while emerging from a downturn. Together with Goldman Sachs, neoIT launched the Index to gauge adoption patterns for globalization.

The report demonstrates that spending toward globalization is expected to increase, even if budgets are frozen or reduced. Globalization is viewed as a cost-reducing solution and experiences characteristics of counter-recessionary markets. …

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Globalization Is Expected to Increase despite Economic Conditions: New neoIT and Goldman Sachs Research Highlights Executive Perspectives toward Globalization
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