London School of Economics predictions for outsoucing in 2010

Today I contacted professor Leslie Wilcocks, one of the experts on outsourcing at the London School of Economics.

I was calling him about the deal that Capgemini had won with the House of Fraser but while I had him on the line I asked him for some predictions for this year.

Off the cuff he had some very interestingf thoughts.

These are some of them:

“A lot of the quick and dirty outsourcing contracts signed during the downturn will break up towards the end of this year.

“The ecomic situation will improve and companies will outsource more, especially BPO, because they have reduced their headcounts. But the recession was deeper in the UK and may take until 2011.

“Governments are readying a lot of outsourcing.”

He also said offshoring will become less controversial which might explain why governments will be more comfortable doing it.

Interesting set of predictions I think. I will continue to post predictions for outsourcing in 2010 so if you have any fill the comments section on the blog.

We can revisit them at the end of the year and see how close to reality we got.

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It will be interesting to see if cloud services will eat into the outsourcing market for desktop applications (eg CSC's recent deal with the Royal Mail).

If cloud services increase, what position will the system integrators and outsourcers adopt to make up for a reduction in their services? Cloud service integration? Private cloud management?

www.altica.co.uk

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Thanks Graham

You are right. What the suppliers do to profit from the cloud will be interesting. Putting anything in the cloud will commoditise it.

There could be significant consolidation.

Karl

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I agree this para ... "The ecomic situation will improve and companies will outsource more, especially BPO, because they have reduced their headcounts. But the recession was deeper in the UK and may take until 2011.

Thanks for posting this regardless of some bad comments about outsourcing.

Phil

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The government will definitely be okay with the idea of outsourcing because it does generate a huge income for them as well. With regards to the debate over outsourcing, it still won't stop but like what you've said, people will slowly become less bothered with it.

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It is especially helpful for countries and the government would be okay with it. We still need more jobs and this is a very good way to give jobs to people. Although, people are still talking about the pros and cons of outsourcing towards the consumers (west) and producers (east), it is undeniably true that both are benefiting from it that is primarily the reason why it continues to blossom.

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