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IT outsourcing contract values have hit their lowest in five years as fears over the stability of the Euro restrain European business spending. Research on the first half of 2012, carried out by the Information Services Group (ISG), revealed the amount spent on outsourcing in the UK was down 12% to €5.7bn, compared with the [...]
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IT spending in Europe will virtually grind to a halt this year and next due to economic uncertainty over the euro currency, according to a Forrester Research report. “The most likely result is either near-zero growth or economic recession in 2012, depending on the country,” Forrester analyst and lead report author Andrew Bartels wrote. “The [...]
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42 per cent of participants in the 2012 Survey of IT Professionals – Outsourcing claimed that their IT outsourcing agreements have cost them more or significantly more than originally planned. Moreover, 64 per cent suspected that outsourcers have made up more work to earn extra money from their organisation. These shocking results are a strong [...]
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The research and analysis company, Everest Group, just published their latest Market Vista: Q1 2012 report – a quarterly focus on global outsourcing and offshoring activity and it shows that despite troubled times in many business markets, outsourcing is holding steady. First quarter global transaction volumes reached about US$3bn in annual contract value (ACV), an [...]
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It’s music to the ears of those trying to staunch brain drain in the Balkans. Analysts at the Gartner company, a leading firm that assesses the global information technology market, are forecasting that this year, more than 23% of the world’s investments will be spent on IT outsourcing, or approximately 697 billion euros. Outsourcing is [...]
Continue reading Everest Group Study Reveals More Than US$85 Billion of Outsourcing Contracts Coming to End of Term in Next 18 Months
June 8, 2012 No Comment
The IT outsourcing (ITO) and business process outsourcing (BPO) markets will witness a significant number of contracts coming to end of term, totaling more than US$85 billion in total contract value (TCV) during the next 18 months, according to Impending Contract Renewals: Back to the Future, published by Everest Group, an advisory and research firm [...]
Continue reading Time to Ring-Fence “Lights On Outsourcing” and Focus on “Business Transformation Services”
May 31, 2012 No Comment
At HfS we see customers who externalize business or IT processes as falling into three distinct camps: 1) The “Lights On” camp. Let’s make no bones about it, we just want to drive out expense without any costly disasters occurring. We don’t see any strategic value in these processes, and as long as it’s cheaper [...]
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It’s been more than three years since HP acquired IT services provider EDS, and the long-term direction of its bigger—if not better—outsourcing business is no more clear than it was on the day the deal closed. While HP’s purchase of EDS for $13.9 billion demonstrated an appetite for the IT outsourcing business, a series of [...]
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Revenue for IT outsourcing (ITO) rose 7.8% globally in 2011, to a total of US$246.6 billion, according to Gartner. In 2010, revenues reached just US$228.7 billion. IBM maintained its position in 2011 as the top earning ITO, with revenues of $26.9 billion, matching the global growth rates at 7.8%. HP came in at number two, [...]
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At the end of the day, it’s not all about outsourcing and it’s not all about shared services; it’s about focusing on how to globalize processes, how to transform finance (and other) functions, and how to govern it all in a global business services context. There is no dominant model, it’s more about achieving the [...]
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