Thecurrent economic downturnwill drive
new ways of providing and pricingIT outsourcingmuch likethebursting of the dotcom bubbleincreased
the take-up of offshore services.
In 2001/2002, when a recession was caused by overvalued
web-based companies,
the dotcom boom came to an abrupt end. As a result, businesses
started to
offshore IT services to lower-cost destinations such as India
to cut costs.
According to Gartner, the current economic slowdown could drive
a similar metamorphism in the way IT services are delivered.
"In 2001/2002 after the dotcom crash, offshore services grew in
the same way we believe the new economic crisis will bring new
delivery models," said Gartner analyst Claudio Da Rold.
Businesses want to cut costs, but not at the cost of future
opportunities, he added. "Businesses should not reduce cost at the
cost of flexibility because this is what happens in bad outsourcing
deals."
He said new models will include
cloud-based services with payperuser or perunit pricing
models.
If businesses commit to long-term agreements with suppliers they
could miss out on the advantages of these models. The suppliers
could also miss out by sticking to current delivery models rather
than being more innovative about how they deliver and charge for IT
services.
To ensure that businesses do not compromise flexibility they
should
steer clear of long-term contracts, said Gartner analyst Linda
Cohen.
"Do not sign 10-year deals today to cut costs because you will
be bound by them when things pick up.They will not be enduring
value for businesses or suppliers," she added.
Cohen said businesses should sign short-term contracts that
improve costs, ensure contracts can be enhanced mid-term and plan
for substantial growth and innovation over the long term.
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