Thanks to emerging technologies like cloud computing, service providers will offer more outcome-based pricing rather than simply equating more FTEs (full-time equivalents) with more work. Customers are interested in fully managed services or variations of managed services with outcome-based service level agreements (SLAs), says Anirban Dutta, director of Global Strategic Business Development at IT services company CSC.
The tough economy has affected the outsourcing industry, along with every other industry out there.
When Ann All wrote about outsourcing trends, citing information from IT services company CSC, she found the trends largely involved buyers deriving more value for their money. Instead of the traditional tactic of trying to negotiate the lowest possible prices, however, buyers are relying on more sophisticated techniques such as outcome-based pricing.
Ann spoke to several other sources, including Unisys, TPI, Everest Group and Compass Management Consulting, to get their takes on top outsourcing trends for the next year. They offered additional insights on the increased value theme, including buyers asking their suppliers for help in targeting internal inefficiencies and developing ideas for improvement.