IT Outsourcing Predictions - 2012

12 T Outsourcing Predictions for 2012 2012 Will Be a Mixed Bag of M&A Activity 1 Outsourcing providers will shy away from mega-mergers due to a shortage of attractive second-tier providers capable of delivering more than added scale. Outsourcing Buyers Take it Slowly Many outsourcing decisions will be postponed. Threat of recession will hold back one-in-four buyers from signing contracts until current economic uncertainty lifts. The Cloud Comes Down to Earth By the end of 2012, the buzz around 'cloud' will have significantly died down. IT leaders and managers will be looking more critically at cloud computing risks and being more critical of its value. IT Service Buyers Look Beyond Labor Arbitrage (But Vendors Don't) 4 Outsourcing customers will want more increased global flexibility or better technology. However IT service providers will still be overly focused on labor arbitrage & cost reduction for their clients, as opposed to process improvement and innovation. IT Outsourcing Deals Gets Small Big outsourcing providers will make concentrated effort to win more business smaller deal size. In 2012, profit margin will trump deal size for the first time. from small firms. This would result into IT Offshore Providers Take Over Infrastructure Outsourcing 6. 2012 will see a number of companies that have relied almost exclusively on U.S.-based IT infrastructure providers continue to shift business to offshore companies. IT Service Providers' Account Managers Get the Boot Outsourcing customers are tired of account managers with too much focus on sales and not enough attention to their unique needs. Account managers will have to start putting relationship ahead of revenue. More Backsourcing Talk Than Action 8. Outsourcing clients will continue to complain about their IT services relationships in the coming year and then decide it's just too much work to bring it all back in-house. #*1EE%o Ø*****ĐẾÝÐ IT Offshore Providers Embrace Riskier Models 9. Pricing pressures will continue to squeeze provider margins, especially offshore. To support growth and profitability, vendors will have to consider innovative and risky engagement models. Application Development Migrates Stateside 10 There will be a retraction in application maintenance outsourcing going offshore as big financial services firms will discover that it's actually cheaper to do the work in secondary U.S.cities either via a third-party or their own captive centers. IT Security Takes Center Stage 11 2012 will be the year of security. Outsourcing companies are going to look for new and better ways to protect their data and that of their customers. Global Companies Seek Global Support Beyond India 12 More large companies will seek to diversify their back-office footprint, not to save money but to access local knowledge and language skills to support their offshore operations. Source: http://edm.enterpriseinnovation.net/network/eNews/NWA_122811.html Designed by www.InfoGraphicDesignTeam.com