Smaller, Shorter-Term Deals Shake Up IT Outsourcing Industry
It's not just cheaper prices pushing down IT outsourcing contract values. The 'new normal' for outsourcing presents risks and opportunities for customers and IT service providers.
It's not just cheaper prices pushing down IT outsourcing contract values. The 'new normal' for outsourcing presents risks and opportunities for customers and IT service providers.
IT outsourcing experts talk about what to expect in the year ahead. And if they're right, this could be the year customers - and a few robots - take greater control of the IT outsourcing space.
Last year, we predicted that 2013 would be the year that outsourcing governance finally grew up. We said outsourcing customers would take the reins with do-it-yourself deals. And we forecasted that local support would be a critical differentiator for service providers. Now it's time to see how those predictions panned out.
After a relatively quiet first half of the year, outsourcing deal activity picked up considerably in the third quarter of 2013, according to the quarterly index compiled by outsourcing consultancy Information Services Group (ISG).
There's a growing shift from tier 1 offshore outsourcing providers to midsize IT services players. Scale and price are no longer the sole interest of outsourcing customers. They are seeking agility, flexibility, vertical alignment, responsiveness and trust -- all of which they are more likely to find in a smaller, more focused provider.
Why can't your IT service providers all just get along? Here are steps you can take throughout the multisourcing lifecycle to get everyone working together.
Cost-conscious customers, uncertain economic conditions and evolving delivery models are causing the IT services market to grow more slowly than expected, according to a recent Gartner report.
Do your IT outsourcing services deals fail to deliver more than the basics? IT outsourcing customers need to focus on developing and training their outsourcing management staff so that their IT services deals are better than just 'good enough.'
A survey of both IT services buyers and IT services providers reveals that while outsourcers deliver cost reduction and increased efficiency, they may lack innovation and analytical capabilities.
With the overall IT services market on the decline, providers may look to emerging markets and emerging technology offerings for growth.
Growth in business-provisioned cloud contracts, particularly in HR, could outpace traditional IT outsourcing, rattling traditional IT service providers.
As the end of the year approaches, the predictions of what's to come in the next 12 months abound. Of course, those predictions are usually quickly forgotten and no one rushes to issue a scorecard for how they fared -- but that's not the case at CIO.com. This year, we're revisiting the 11 outsourcing trends we forecast for 2011 to find out which of them actually came to pass.
IT service providers are big on talk of innovation these daysÂexcept when it comes to their own sales practices. It seems as if many vendor sales teams have been pulling from the same bag of frustrating and ineffective tricks to try to win deals since the dawn of IT outsourcing.