The IT outsourcing industry just logged its worst first quarter in terms of annual contract value of deals awarded since 2004, according to analysis by outsourcing consultancy and research firm Information Services Group (ISG). Just $3.5 billion in annual contact value was awarded in the three-month period, down 27 percent from the same time last year, said ISG.
This year brought the IT outsourcing industry an increase in hybrid offshoring, a greater focus on in-house service integration, a new lower-cost consulting model, smaller deals, and bigger governance requirements.
When it comes to IT services, sourcing to multiple providers continues to be the predominant trend, according to the third quarter outsourcing index compiled by outsourcing consultancy Information Services Group (ISG).
Parceling out an IT services portfolio among a number of vendors is the new normal for IT outsourcing. However, these multi-sourcing arrangements are complicated -- if things go wrong there's no single provider to blame. Here are eight steps you can take to manage liability in a multi-sourced environment.
The amount of IT outsourcing business up for grabs, coupled with an eruption of emerging technologies and delivery models, has made 2015 a buyers' market for IT services. As a result, IT service providers are engaged in a price war the likes of which hasn't been seen for nearly 15 years, says Steve Hall, partner and global application development and maintenance lead at outsourcing consultancy Information Services Group (ISG).
The need to remain competitive has kept offshoring an essential part of nearly every company's sourcing strategy. The questions that remain are what and how to offshore. Offshore pioneers who have navigated the changing IT offshoring terrain have some answers based on a decade's worth of lessons. In part 1 of a two-part series, we look at seven of those lessons.