Ross Tisnovsky, VP of research for global consulting company Everest, says with labor arbitrage fully mature, companies are seeking different solutions. In the applications outsourcing (AO) market, providers are experimenting with new models including risk-shared partnerships and industry-specific AO solutions. In infrastructure outsourcing (IO), it's leading to a 'crisis of genre' for offshore suppliers. As they mature and reach critical size, they begin going after the same clients as multinational suppliers. This forces them to shift to traditional rules of IO, deviating from the innovations they brought to the IO marketplace.
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.