Outsourcing is not all just about cost any more, says recent research
According to the recent Industry Research Report (May 2010), in 2010-2011 the global IT Outsourcing landscape is going to observe the following key trends:
1) The key areas of increased outsourcing scope are expected to be in areas with heavy low-cost labor arbitrage support (nearshore and offshore) – software applications, call center, engineering management, finance & accounting, analytics and human resources. In some cases, half companies interviewed will be increasing outsourcing scope
2) The middle-market ($750m-$3000m annual revenues) is poised to be the most active
3) The principle drivers behind outsourcing are cost reduction, desire to globalize business operations and to transform / re-engineer business processes
4) The main Inhibitors are other priorities brought on by the economic crisis and internal politics / resistance to change
5) When evaluating vendors, global scale, financial stability and operational excellence are the table-stakes. Business transformation capabilities are the differentiators
6) Customer-willingness to evaluate cloud-based “business utility” offerings is strong as they increasingly look at hybrid IT/BPO solutions
7) There are strong signs of increased adoption of industry-specific ITO/BPO solutions, most notably in the Financial Services and Life Sciences sectors
Overall, 2010 is primed to be a very strong year for outsourcing adoption worldwide.
Source: "The IT Outsourcing and Business Process Outsourcing Industry Landscape in 2010" by Horses for Sources
1) The key areas of increased outsourcing scope are expected to be in areas with heavy low-cost labor arbitrage support (nearshore and offshore) – software applications, call center, engineering management, finance & accounting, analytics and human resources. In some cases, half companies interviewed will be increasing outsourcing scope
2) The middle-market ($750m-$3000m annual revenues) is poised to be the most active
3) The principle drivers behind outsourcing are cost reduction, desire to globalize business operations and to transform / re-engineer business processes
4) The main Inhibitors are other priorities brought on by the economic crisis and internal politics / resistance to change
5) When evaluating vendors, global scale, financial stability and operational excellence are the table-stakes. Business transformation capabilities are the differentiators
6) Customer-willingness to evaluate cloud-based “business utility” offerings is strong as they increasingly look at hybrid IT/BPO solutions
7) There are strong signs of increased adoption of industry-specific ITO/BPO solutions, most notably in the Financial Services and Life Sciences sectors
Overall, 2010 is primed to be a very strong year for outsourcing adoption worldwide.
Source: "The IT Outsourcing and Business Process Outsourcing Industry Landscape in 2010" by Horses for Sources




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