Windows XP upgrades and SAP testing to drive project based outsourcing this year

Windows XP upgrades and SAP upgrade testing are two areas that will stimulate the outsourcing sector this year.

Nick Mayes, research director at PAC, said in a report  that while there will continue to be a level of demand for big traditional outsourcing deals that clean “‘your mess for less” he expects “clients to look for more point solutions to address specific challenges such as upgrading from Windows XP, insurance policy administration platform consolidation and SAP upgrade testing.”

This echoes something Sam Kingston said in his IT outsourcing predictions for 2013. He said there would be an avalanche of Windows XP migration projects.

“With one year to go until Windows XP is officially retired for good, companies who have not moved off this ageing platform will start to feel uneasy as vendors wind down any remaining support for products sitting on this desktop OS. This D-day of the modern IT era has always felt far enough away, to some, to be brushed aside. When supporting vendors start to announce end dates for their XP based products, the realisation that the date is fast approaching will hit these companies, and a wave of migration projects will be kicked off in a bid to at least move the underlying OS forwards onto the next supported platform. Windows 8 is still too fresh, and its benefits beyond the tablet are still being debated. Windows Vista is a non-starter, so this leaves the rational choice for the next step to be Windows 7,” he wrote in this blog.

Meanwhile Ovum says that “stability, capability and accessibility” will be the key words for IT buyers in 2013.

Jens Butler, principal analyst, IT Services at Ovum says: “The fact that we live in very uncertain times makes investment decision-making even more difficult. With continuing instability across the global markets and even in locations with historically robust growth such as China and India, the outlook for IT services in 2013 is unpredictable.”

“Enterprises will be looking for greater reliability in their IT usage and, as a consequence, seeking stability, capability and accessibility among their external service providers.” In line with recent trends, Ovum’s Bundling Index points to an increasing desire for longer term commitments and extended-scope outsourcing engagements.”

In 2013, the push to fill out portfolios, especially across some of the newer technology arenas such as mobility, analytics, social and cloud, will continue to grow and a multitude of vendors will look to take advantage of this desired technology adoption, even if it means looking to a single supplier to deliver these services.”

See other predictions.

At the end of last year I did a round of IT outsourcing predictions for 2013. I  featured Matthias Mierisch of Avarto, Robert Morgan of Burnt-Oak PartnersSam Kingston from T-Systems, outsourcing lawyer Mark Lewis of Berwin Leighton Paisner  and KPMG’s Lee Ayling.