Game outsourcing a necessity

UK game developers see outsourcing as fundamental to their business in order to compete in the next-generation market and cope with the current financial downturn, according to a report published by Tiga, says GamesIndustry.biz.

The report puts the number of UK developers that outsource at least one business process at 83%, with leading developers such as Blitz Games, Monumental Games and Ubisoft Reflections all admitting to outsourcing elements of projects.

"A few short years ago, outsourcing was almost taboo, now it is a necessity," said David Tolley, outsourcing manager at Monumental Games.

Tata Consultancy Services (TCS), India's largest outsourcing firm, has opened a new centre in Queretaro, Mexico, a reflection of the growing move to diversify offshore locations, writes Forbes.

TCS said it would hire 500 people to work at the new centre, its third in Mexico since entering the country in 2003.

The company has seven centres across Latin America, in Brazil, Argentina, Uruguay, and Chile, as well as Mexico, and employs IT consultants in 42 countries around the world.

Industry analyst group IDC announced last week that its new survey shows in times of economic uncertainty, there is an increase in the outsourcing of managed hosting solutions among large organisations in New Zealand, states Web Host Industry Review.

The study echoes the results of two other reports from IT services provider Savvis and IT security solutions provider Symantec, which also show a shift toward IT infrastructure outsourcing.

The study shows that the sector grew 6.9% year-on-year in 2008, outpacing overall IT services growth and is expected to maintain this pace for the next five years.