Ten IT outsourcing game changers from Gartner

I attended Gartner’s annual get together for the outsourcing community today and thought  I would share with you the ten things or “game changers” in IT outsourcing, according to the analyst firm.

I will expand on this in an analysis but here are the ten “game changers.”

1 – The economy

The economy has been so bad in recent years that outsourcing has seen major changes. These include suppliers sharing some of the pain that their customers are suffering and new delivery models emerged to help customers cut costs.

Gartner analyst Helen Huntley says, “IT would not have got to where it is today, with the application of new business models, without the tough economic environment.”

2 – Generation Y
With people born between 1982 and 200, known as generation Y, now a significant portion of the workforce businesses need to have the right kind of technology in place to satisfy them. “We need to entice generation Ys with the right IT or they will go somewhere else.

3 – Globalisation
There are more choices of where to buy IT services but there are also new risks for CIOs to consider.

4 – Sustainability/Green IT
Businesses are expected to lower their carbon footprints.
Huntley gave a good example. Alaska Airlines replaced paper based manuals for pilots with iPads with manuals on them. This meant no need to carry 1000 sheets of paper in the cockpit. This is good for the environment because less paper is being used, less fuel on the aircraft because less weight is on the aircraft and it is much easier to use.

5 – Cloud Computing
Put quite simple by Huntley: “If you have not got a cloud strategy now get one immediately.” She could have said the same thing last year. Probably the year before as well.

6 – Industrialised services
Within the next five years enterprise spending on industrialised services like software as a service and infrastructure as a service will reach $122bn.

7 – Asset lift
The more that businesses buy IT as a service the less the need for internal assets. By next year 20% of businesses will have no IT assets of their own.

8 – Consumerisation
Consumerisation of IT will not only change the technology used in offices around the world but the way businesses interact and serve customers.

9 – Unpredictability and risk
With the use of more and more suppliers and new relationships businesses must dedicate resources to asses the risks associated with working with suppliers.

10 – Externalisation
It will be increasingly a case of how the IT department get other companies to do things for you rather than how do you do it yourself. “It’s not what you do but how you get things done.”

Ok so that’s Gartner’s 10 game changers. Not really any surprises there.




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