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10 outsourcing trends to watch in 2010

Stephanie Overby | Dec. 18, 2009
Outsourcing consultancy Everest predicts that although suppliers will see a resurgence in demand for IT and business process outsourcing services in 2009, growth rates are unlikely to return to pre-2008 levels.

But such projects will make a gradual recovery in 2010, predicts Everest, noting that "the pace of this change will be dictated entirely by the improvement in the global business environment."

10. Semi-Sourcing. Cloud computing and software-as-a-service-which EquaTerra's Stan Lepeak calls "semi-outsourcing alternatives"-will make waves in the IT services industry in the year ahead.

The IT outsourcing market has reached a major tipping point, according to Forrester Research analysts, and a focus on outcomes means that traditional deals will continue to decrease during the next several years as new utility and cloud service offerings proliferate. "This will be a large focus as companies try to figure out how this will work," agrees Dave Brown, head of EquaTerra's financial architecture practice. "Those that develop a sustainable commercial offering will hit the headlines early and often."

Modularity will be the name of the game. Suppliers are poised to offer buyers more and more plug-and-play services coupled with pay-as-you-go pricing. "We have observed a continuing move toward a more scalable and virtual infrastructure for many services...and more aggressive efforts to take advantage of sourcing's ability to scale up or down with the size of the business," says Melany Williams, partner and managing director of service provider consultancy TPI Momentum.

But it will be small and midsize companies leading the charge in this space in 2010, says Everest, while large enterprises wait for more of the technical and business challenges to be resolved before adopting these new delivery models.


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