Both buyers and suppliers are showing interest in managed services, says Ross Tisnovsky, VP of research for global consulting company Everest. While the right application of this model shows multiple benefits, challenges can include setup complexity, volume uncertainty, impact on different IT functions and organizational change requirements. Buyers must also contend with risks inherent in the move to managed services, such as potential cost escalation in situations where volume is uncertain and demand trends unknown.
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.