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IT Outsourcing Predictions for 2015

by: Sarah Joson

Wednesday, January 14, 2015 |

IT Outsourcing Forecast

A post at NetworkAsia.net indicated the recent findings and predictions of CIO.com on the global outsourcing industry. It includes the forecasts of outsourcing onlookers and industry specialists who believe that the IT outsourcing industry will be more business-centric, decision-making processes will be largely anchored on results, and RFPs are restructured, as customers become more open to standardization and changes.

1. Results will be the backbone of everything.
Decisions, strategies, and even pricing will be based on the results that the buyer wants for his/her company, which largely involve an outcomes-based pricing. More market-facing process solutions for marketing, campaign management, and inside sales will be seen this year as providers are aiming to align compensations and incentives with the overall strategy of a campaign.

2. Autonomics and cloud technology will merge.
This year, the cloud will be reinforced as autonomics, also known as “smart bots”. These will pave the way for the ‘labor-as-a-service’ approach. Buyers, as well as providers, see this opportunity since it can be easily hosted on cloud platforms, and can be flexible.

3. First came the cloud, everything else followed.
Since everyone is getting more acquainted with cloud technology, people are starting to realize its benefits such as virtualization, increased efficiency, reduced support costs. With the convergence of utility computing and virtualization, a new IT outsourcing operating model will soon level out the playing field once again.

4. Companies will renegotiate deals.
As more companies want IT processes to be standardized, they will look for several options involving cloud brokerage software that can enable them to understand analytics and automation better.

5. Buyers will pay more attention to IT supplier risk.
Buyers will be seen preparing for risks in advance since they are trying to avoid unnecessary slowdown in operations. In fact, some are making simulations of what could possibly go wrong with their IT suppliers so they will be equipped should mishaps happen in the future.

6. Multi-sourcing amongst buyers will increase.
Software-as-a-Service will grow - creating a domino effect in the type of deals buyers and providers will encounter. Multi-sourcing will become more commoditized which will result to more renegotiations and an augmented governance requirements. For renegotiations, decisions will be widely based on integration - how cloud is applied to the process and the entire organization.

7. IT services will surpass trendy tech gadgets.
Buyers will look beyond hot ticket items that can be supplemented to their current IT structure. Instead, they will be more eager to see what services can help further their operations.
 
8. RFPs will be a thing of the past.
Since technology is a fast-paced element, RFPs will just weigh the process down instead of expediting it. Anything can change with a blink of an eye, and having to wait for a proposal just won’t do. Every day, the story is bound to change in the world of IT, and it certainly won’t stop a provider to present their offerings, or a client to make a decision.
 
9. Cloud will be more comprehensible.
Companies will be more careful when purchasing cloud-provided infrastructure and solutions since the trial and testing period is over. They are now more confident in making cloud decisions because more information and feedback have been released since it gained traction last year.

10. Analytics will lead sourcing operations and strategies.
Sourcing will become a challenge to organizations since everyone is looking for the next best opportunity. This is where a deeper dive into analytics will come in handy because companies will have the necessary data to make the next move. In addition to that, enterprises will look for better deals that are clear as day so that the integration of management processes and multi-sourced operations will be done properly.

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