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Latest Trends in the Outsourcing Industry

by: Sarah Joson

Friday, May 11, 2012 | Outsourcing News |

Tech Outsourcing Trends of 2012

An article by Stephanie Overby at CIO.com shows just how fast the outsourcing industry is evolving. As the end of this year’s second quarter approaches, trends that can widely affect an outsourcing operation are still emerging.

1. Contract sizes are declining. Information Services Group (ISG), an outsourcing consultancy firm, stated that even if the volume of large and medium-sized outsourcing contracts had remained normal over the past decade, IT services transactions were seen getting smaller in size. In fact, contracts which are less than $100 million have increased three-fold.

2. Pricing models are getting trickier. As outsourcing vendors are striving to get more revenues, they are predicted to cross the safe zone by applying engagement models, output-based pricing, establish new partnerships, revenue-sharing measures, and an additional quality control process.

3. Establishing a control hub. Nowadays, clients who contract several providers for each of their processes are left clueless as to what to do with their fleet of suppliers. For some IT companies, managing multi-sourced operations has become one of the services that they offer, while others hire specialists to keep the providers in line.

4. Stricter security protocols. One of the things that would probably never stop evolving is a company’s security policy. Since data and information are the backbone of businesses, executives are always coming up with better, stricter, and more efficient ways to protect them from security breaches. This is also considered as one of the greatest challenges for both parties.

5. Cloud-based services. Global consultancy and research firm Everest Group says clients are now looking into services such as remote infrastructure management, which is why service providers are doing their best to iron out issues that may affect a buyer’s decision to use the cloud.

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