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The purpose of this paper is to review recent trends and issues in global IT sourcing and to introduce papers in the special issue: “Social, managerial and knowledge aspects in global IT sourcing”.

The paper examines trends by regions including Brazil, Russia, India and China and also trends in Captive Centres and their strategies.

There will be a continuing rise in outsourcing revenues for global outsourcing, with BPO overtaking ITO within five years. Multi‐sourcing will continue to be the dominant trend. India will continue to dominate but its role will change. China heralds promise but will still struggle to achieve scale in Western European and North American markets. Emerging country competition will intensify. Software as a service will be a “slow burner” but will gain momentum in the second half of the next decade. Near‐shoring will be a strong trend. Outsourcing, by offering a potential alternative, will help discipline in‐house capabilities and service. Knowledge process outsourcing will increase as the BRIC and emerging countries move up the value chain. Captive activity – both buying and selling – will increase (see below). Outsourcing successes and disappointments will continue as both clients and suppliers struggle to deal with a highly dynamic set of possibilities

The paper is of value to both academics and practitioners working in the field of IT sourcing. The study of captive centres is in its early stages and the paper introduces further work in this area.

Outsourcing is in a new era: an era of value-adding services, innovation and transformation. An era that shifts competition to skills and expertise where the main focus of key players in the industry is on the strategic impact of outsourcing services. As the outsourcing landscape is changing, so competition between countries for outsourcing work is reconstructing. It is no longer competition for low costs, but a search for superior skills, both technical and managerial, that provides the strategic guidance and operational excellence needed in the twenty-first century. While the professional and academic literature has extensively studied the comparative advantage of low-cost locations such as India, we know very little about the attractiveness of Western countries, such as the UK, for outsourcing services. To contribute to this end, the purpose of this paper is to examine the UK attractiveness in light of three key trends in the outsourcing industry: the maturity of the outsourcing industry drives more client firms to seek impact on business and strategic performance from their vendors; client firms and vendors deploy complex sourcing models that increase the importance of sourcing managerial capabilities, such as relationship management, vis-à-vis technical and delivery capabilities; locations with promising entry points to lucrative markets are becoming attractive for outsourcing investments as part of the firm's growth strategy.

The empirical base of this study is based on a comparative analysis of eight European destinations (UK, Germany, France, The Netherlands, Spain, Ireland, Czech Republic and Poland) to conclude that the UK, as a talent-base, value-adding country that also offers advanced sourcing capabilities, has positioned its economy to attract investments from both outsourcing vendors and client firms. While the authors acknowledge the relative high-cost base of the UK economy, they assert that the high service standards, access to skills, entry point to mainland Europe and the USA, government support and supportive infrastructure are superior value propositions offered by the UK in the context of outsourcing services.

The findings of this study highlight the contribution of Western economies to outsourcing and their fairly strong comparative position to specific line of services such as contact centers, research and development and specific business process outsourcing services.

The main limitation of this study is the use of a country attractiveness framework which has been mainly used for low-cost countries. The authors therefore acknowledge the need to develop a country attractiveness framework which is suitable for Western countries.

This study offers decision makers an extensive tool to assess their outsourcing investments by considering both low-cost and Western countries based on the value expected from each investment.

This is the first study on the attractiveness of a Western country, such as the UK, which the authors defined as a talent-based, value-adding and advanced sourcing (TAVAAS) country. Through the examination of its comparative attractiveness the authors highlight the potential of the UK and many other Western countries such as USA, Germany or Canada to attract outsourcing investments.

To identify key lessons, trends and enduring challenges with global outsourcing of back office services.

The authors extract lessons, project trends, and discuss enduring challenges from a 20 year research program conducted by these authors and their extended network of co‐authors and colleagues.

The authors identify seven important lessons for successfully exploiting the maturing Information Technology Outsourcing (ITO) and Business Process Outsourcing (BPO) markets. The lessons require back office executives to build significant internal capabilities and processes to manage global outsourcing. The authors predict 13 trends about the size and growth of ITO and BPO markets, about suppliers located around the world, and about particular sourcing models including application service provision, insourcing, nearshoring, rural sourcing, knowledge process outsourcing, freelance outsourcing, and captive centers. The authors identify five persistent, prickly issues on global outsourcing pertaining to back office alignment, client and supplier incentives, knowledge transfer, knowledge retention, and sustainability of outsourcing relationships.

The authors present some experimental innovations to address these issues.

The Orange River is one of the largest river basins in southern Africa. Since it plays a crucial role in the region's ecology and economy, it is important to estimate future developments in its hydrology. A necessary means to this end are climate projections. This paper seeks to address this issue.

In this work the authors present projections obtained by two complementary methods; they use a Statistical Analogue Re‐sampling Scheme (STARS) and a dynamical regional climate model (CCLM – COSMO in Climate Mode). In order to determine the viability of these methods, the authors perform cross‐validations for the years 1976‐2000.

CCLM shows good performance regarding the 2 m temperature but the reproduction of precipitation is rather poor. STARS, on the other hand, produces very good results for both variables. The climate projections of both models show a considerable temperature increase for the future (2036‐2060, SRES A1B scenario), especially in the inland of the simulation area. However, while CCLM projects a general decrease in precipitation, STARS indicates a strong precipitation decrease in the already dry western part of the region and a moderate decrease resp. no change in the east during the rain season.

For the first time the statistical approach used gridded data as its input. Therefore, it was possible to apply complementary methods in order to generate the climate projections and to compare them.