IDC probes outsourcing customers

 

IT analyst firm IDC has released its annual report on user preferences and needs for IT outsourcing services. It also delves into the expectations of organisations seeking these services.

The report titled ‘In The Mind Of The Outsourcing Customer: IDC’s Annual Outsourcing Survey 2007’ has revealed that companies are contracting with renegotiation in mind. IDC claimed organisations are creating leverage via strategies including ‘price benchmarking’, ‘claw-back’ and ‘blue-sky’ clauses.

“This finding is primarily driven by the need for flexibility to redefine the contract and minimise the risk. However, customers need to bear in mind that short term selective outsourcing contracts with blue-sky clauses may provide flexibility within the scope of services, but will not be very price competitive when compared to traditional outsourcing contracts,” said Aprajita Sharma, research manager Outsourcing and BPO, IDC.

She added that despite the growth of the multi-sourcing trend, outsourcing suppliers like IBM, EDS, CSC continued to sign longer term, highly bundled, multi-tower contracts in 2007.

“IBM managed a sweeping victory over its competitors when it came to ranking customer perception of being a leading outsourcing player,” she said. “IBM has reinforced this with some high profile strategic deals signed with National Australia Bank, Commonwealth Bank and others within the Government segment.”

The report also highlighted trends across various verticals that are acting as catalysts in boosting outsourcing spend in the local market.

IDC probes outsourcing customers
 
 
 
Top Stories
The True Cost of BYOD - 2014 survey
Twelve months on from our first study, is BYOD a better proposition?
 
Photos: Unboxing the Magnus supercomputer
Pawsey's biggest beast slots into place.
 
ANZ looks to life beyond the transaction
If digital disruptors think an online payments startup could rock the big four, they’ve missed the point of why people use banks, says Patrick Maes.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
What is delaying adoption of public cloud in your organisation?







   |   View results
Lock-in concerns
  29%
 
Application integration concerns
  3%
 
Security and compliance concerns
  27%
 
Unreliable network infrastructure
  9%
 
Data sovereignty concerns
  22%
 
Lack of stakeholder support
  3%
 
Protecting on-premise IT jobs
  4%
 
Difficulty transitioning CapEx budget into OpEx
  3%
TOTAL VOTES: 1128

Vote