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ATOMOutsourcing on the rise in 2008
Added by The Editor, 6 months ago.
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The global outsourcing market will grow eight per cent in 2008, according to research by analyst group Gartner.
While the value of publicly-disclosed contracts in IT and business process outsourcing dropped by half during 2007, analysts at the company suggest that this may be because fewer deals are being publicised.
In fact, they say, companies are outsourcing more, but frequently opt for a multi-supplier strategy, resulting in deals that are smaller in size and less frequently reported.
This may change, predicts Kurt Potter, a Gartner research director. "In 2008, we expect to see some early adopters of multisourcing to consolidate around fewer providers to reduce their service integration costs and harvest the benefits of better relationship management with fewer strategic suppliers," he says.
However, he also warns that many businesses still have immature IT sourcing and governance structures that don't align well with business objectives, often resulting in lower-than-expected cost savings and other benefits. Businesses need to offer trust and control to their suppliers if they are to fully benefit from outsourcing deals, he adds.
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Stephen Gray, 6 months ago
I agree, most companies are already using multiple suppliers already, which is a form of multi-sourcing. However, the real focus now needs to be on identifying and unlocking the real benefits that can be gained from efficient and intelligent multi-sourcing of IT services.
Greg Longman, 6 months ago
I don't know if I agree with Kurt's assessment that we could see a move away from organisations using several outsourcing providers to less than a handful. After all, many organisations are taking the less risky option by investing in several suppliers. Sure, it may not produce headline-grabbing cost savings but when your finance director is concerned about the economy, you could argue it makes sense to be risk-averse.