PA news

PA launches international IT outsourcing survey to challenge the status quo

PA has just launched its 2009 IT outsourcing survey, which raises some contentious statements that challenge the status quo and identifies three key issues around which we can engage clients – particularly in a financial climate that is forcing many clients to review their current and future sourcing requirements.

The three key issues that emerged are:

1. Organisations are going to use more outsourcing suppliers (multi-sourcing) to try and reduce costs – currently they either fail to recognise the need to manage supplier integration OR they don't know how to integrate and manage this portfolio of suppliers. If they get it wrong (and many already are) it is going to create significant costs down stream.
   

2. Suppliers are trying to protect their revenues by building stronger relationships but many clients’ governance organisations are not mature enough to respond – they are missing out on an opportunity to improve their outsourcing arrangements and to save cash. Some clients are concluding that the best way forward is to re-compete their existing arrangements – this is both costly and time consuming.
   

3. Organisations want innovation within their outsourcing arrangements – it is often in the contract but clients do not know what they really want and the suppliers do not know how to work with them – they can save cash and/or generate revenue if they get innovation right so they need to start working on it.