European Outsourcing and Services Survey Reveals Client Organization Priorities for 2009
I. Rold. (2009)Key Findings
• Outsourcing and services will increase. There is an increased level of interest within
midsize businesses and across a balanced share of vertical markets toward extending
their externally sourced activities in 2009.
• More business managers than IT managers appear to be involved in service sourcing
decision making.
• Outsourcing growth has slowed, but is still there. Almost 60% of surveyed organizations
have indicated that they will outsource more, versus 7% that indicated they will
outsource less.
• Evergreen objectives and challenges dominate the plans. Client organizations are
predominantly looking for cost reduction, seeking access to resources, aligning IT to the
business needs and getting more value from existing investments.
• Interest in and use of services based on alternative delivery models are on the rise.
Europe is becoming a sweet spot for these new offerings through 2009 and 2010.
Recommendation
• Consolidation of traditional providers, the rise of new and industrialized offerings, and
increasing price pressures are affecting everyone. Careful strategy development,
superior execution (operational control and quality assurance) and a strong
understanding of the current market reality are required. Despite the traditional, although
more intense, requirements for prompt cost optimization, better business alignment and
more value for money, IT and business managers will be required to apply more-diligent
approaches to developing sourcing strategies and management capabilities. Midsize
companies and business managers also need to address these issues..
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European Outsourcing and Services Survey Reveals Client Organization Priorities for 2009I. Rold. (2009)Key Findings
• Outsourcing and services will increase. There is an increased level of interest within
midsize businesses and across a balanced share of vertical markets toward extending
their externally sourced activities in 2009.
• More business managers than IT managers appear to be involved in service sourcing
decision making.
• Outsourcing growth has slowed, but is still there. Almost 60% of surveyed organizations
have indicated that they will outsource more, versus 7% that indicated they will
outsource less.
• Evergreen objectives and challenges dominate the plans. Client organizations are
predominantly looking for cost reduction, seeking access to resources, aligning IT to the
business needs and getting more value from existing investments.
• Interest in and use of services based on alternative delivery models are on the rise.
Europe is becoming a sweet spot for these new offerings through 2009 and 2010.
Recommendation
• Consolidation of traditional providers, the rise of new and industrialized offerings, and
increasing price pressures are affecting everyone. Careful strategy development,
superior execution (operational control and quality assurance) and a strong
understanding of the current market reality are required. Despite the traditional, although
more intense, requirements for prompt cost optimization, better business alignment and
more value for money, IT and business managers will be required to apply more-diligent
approaches to developing sourcing strategies and management capabilities. Midsize
companies and business managers also need to address these issues..
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