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Forrester: Traditional Outsourcing “on its Deathbed”

by: Karen Cayamanda

Wednesday, July 27, 2011 | Outsourcing News |

Global Business Process Outsourcing to Lose Traction?

Traditional outsourcing will be a thing of the past as the shift to innovation and emergence of technologies such as the Cloud take over. This is according to independent technology and market research firm Forrester Research.

“IT outsourcing as traditionally understood is on its deathbed,” said Ellen Daley, vice-president and practice leader at Forrester Research.

A Forrester study, involving 568 companies, reveals that expectations on costs savings are not met and more and more clients are not satisfied with the quality of work. Without cost reduction which is a primary reason companies outsource, clients are considering better technologies such as the Cloud.

Daley said there is a significant decrease in client spending on aspects that are usually present in corporate IT outsourcing budgets such as enterprise resource planning and human capital management software. On the other hand, the study reveals an increase in client spending when it comes to aspects such as business intelligence.


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