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IT Outsourcing Trends - 2016 and beyond

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IT Outsourcing Trends - 2016 and beyond

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Worldwide IT Outsourcing market
Digitalization puts pressure on all organizations
Business leads technology
Large contract renegotiation
New working & pricing models
Flexible sourcing models
Project management trends
Co-opetition between IT service providers
Focus on risk
Employment strategies
New technology trends

Worldwide IT Outsourcing market
Digitalization puts pressure on all organizations
Business leads technology
Large contract renegotiation
New working & pricing models
Flexible sourcing models
Project management trends
Co-opetition between IT service providers
Focus on risk
Employment strategies
New technology trends

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IT Outsourcing Trends - 2016 and beyond

  1. 1. IT Outsourcing Trends 2015 & beyond
  2. 2. 1. Worldwide IT Outsourcing market 2. Digitalization puts pressure on all organizations 3. Business leads technology 4. Large contract renegotiation 5. New working & pricing models 6. Flexible sourcing models 7. Project management trends 8. Co-opetition between IT service providers 9. Focus on risk 10. Employment strategies 11. New technology trends Agenda
  3. 3. WORLDWIDE IT OUTSOURCING $100 BILLION worth of outsourcing contracts will be renegotiated in the following year, according to Stanton Jones. Number of outsourcer per company will multiply even further Organizations want in on the cloud More than half of all UK organizations are using, or planning to use, public cloud vendors. The satisfaction with these cloud vendors, such as Amazon, Google, Microsoft, Oracle, Rackspace, Salesforce.com and SAP is generally high Focus on core business is the main driver for outsourcing When asked for the main drivers of employing ITO services, 68% of the respondents cited a need for their companies to focus on core businesses. Organizations looking to outsource more this year are also returning to investing to support the business, after sweating existing assets during the economic downturn in the late 2000s. Cloud, utility computing, and virtualization will converge, and everything will start to look the same Businesses will continue to outsource… The market of outsourcing companies is expected to grow. In UK for example 69% of respondents in a survey say they will continue to outsource at the same rate or even more.
  4. 4. MORE EXPECTATIONS Digitalization is transforming organizations, putting pressure on organizations to adapt. As a consequence they will replace reactive service providers that lack innovation and business understanding with strategic technology partners that are able to deliver deep technology driven innovation
  5. 5. BUSINESS LEADS TECHNOLOGY Technology will be purchased more and more by business leaders rather than IT departments. Organizations will migrate to a service brokerage model, focusing on rationalization, integration and security
  6. 6. LARGE CONTRACTS RENEGOTIATION Many customers will replace traditional outsourcing with multisourcing, cloud-based models
  7. 7. PROCUREMENT PROCESS The traditional RFP fades in front of emerging procurement methods as it takes too long to define specifications & it costs too much. Business requirements change and it takes a collaborative approach to identify needs and proactively define specifications
  8. 8. NEW WORKING MODELS Labor as a Service
  9. 9. NEW PRICING MODELS Business outcome based pricing, pricing based on performance
  10. 10. HYBRID OUTSOURCING Offshoring is no longer the default. A hybrid model that leverages onsite, onshore, nearshore and offshore tends to be acknowledged as the best sourcing strategy
  11. 11. OUTSOURCING PARTNERS Managing service providers, due to increasing application focus and the commoditization of infrastructure, will take on characteristics that we see in software portfolio management today -- elimination of duplicated and unused services, allowing for growth, negotiating and negotiating again (…) Integration will be absolutely critical and is likely to be the key differentiator between one organization's IT effectiveness and another's.” Scott Fueless, principal consultant with ISG Large deals will disaggregate in smaller ones for more transparency & control and small projects might be aggregated into complex, enterprise wide solutions for better project governance & to achieve business goals. Outsourcers per customers will multiply even further, making project governance a complex task ”
  12. 12. OUTSOURCING CO-OPETITION Multi-sourcing strategies will oblige competing service providers to work together to achieve common business goals. Various organizations already implemented “outsourcing cooperation agreements” that bind service providers to cooperate at operational level
  13. 13. DATA-DRIVEN OUTSOURCING Enterprises will choose IT services partners based on cost, project transparency & data to understand optimization opportunities
  14. 14. DOMESTIC SOURCING & INSOURCING Domestic sourcing & insourcing will remain in the game, sometimes brought back, especially for projects that require senior, experienced teams, agility, cultural alignment & local business understanding
  15. 15. PROJECT GOVERNANCE The growing complexity & diversity of service providers ecosystem transformed project governance into a critical capability, enabling organizations to manage performance, risk and compliance
  16. 16. PROJECT MANAGEMENT The day of project management amateurs is over, organizations are struggling to attract entrepreneurial Project Managers. Projects get more complex therefore PMs need to become masters in coordinating various tasks, teams and sources. • crowdsourcing (eg: Wazoku Idea Spotlight) • big data (for cost projections or hidden correlations) • methodologies adapted to project scope (high focus on agile) • dedicated collaboration tools/central project hubs (eg: Slack, Yammer, Salesforce Chatter, Flowdock) gain grounds in front of the traditional emails • gamification (rewards & points to make boring tasks more enjoyable
  17. 17. INTERNAL SERVICE INTEGRATION COMPETENCIES The increasing complexity of the multi-sourced environments makes internal service integration competencies strategic. This enables organizations to keep control, make sure all services are compliant and select easier niche service providers for future needs
  18. 18. FOCUS ON RISK Integrating supplier risk into business operations Business decisions based on different real-time risk events
  19. 19. FOCUS ON RISK Geopoliticalrisks are asserted – caution about countries with political and economic turmoil to avoid disruptions
  20. 20. EMPLOYMENT STRATEGIES IT service providers will increasingly use gamification to keep employees engaged during the performance of routine and monotonous tasks
  21. 21. EMPLOYMENT STRATEGIES BYOD / Work from home Security challenges & strategies
  22. 22. EMPLOYMENT STRATEGIES Strategic focus on HR strategies, recruitment, talent retention & talent pool creation, SDC & certification programs; Recruiters need to enter the marketing game
  23. 23. NEW FORMS OF SOCIAL INTERACTION Communities (online and offline) will form around products and solutions, being the source of new ideas that develop the product, and a way to recruit new employees. Forum
  24. 24. CLOUD COMPUTING As the industry becomes more and more comfortable working with the cloud, the industry is becoming even more comfortable with the benefits of standardization -- increased efficiency, virtualization, reduced support costs. Thus, even in bespoke outsourcing arrangements, there may well be more similarity than difference, both within a single company's formerly complicated IT environment, and across companies -- both client and provider. The cloud, utility computing, and virtualization are converging to create this new operating model that will become the new paradigm for IT outsourcing. Joshua'Konvisser,'Pillsbury'Winthrop'Shaw'Pittman ” Cloud comes down to earth
  25. 25. SMART MACHINES MOVING UP THE VALUE CHAIN As artificial intelligence evolves, development and implementation of robot like technologies will be used to automate tasks and processes currently performed manually in house or through outsourcing partners
  26. 26. • We'offer'discrete'solutions'to'known'business'challenges'and'build'bespoke'solutions'for'your'specific' requirements. • Our'delivery'models'encompass'the'full'range'of'development'options'and'our'ability'to'engage'from'nearshore' with'UK'presence,'as'required,'gives'you'full'control'over'costs. • We'offer'a'refreshing'approach'to'commercials,'enabled'by'our'unique'structure. • Our'final'building'block'to'deliver'the'right'business'solutions'for'you'is'in'depth'knowledge'of'your'industry' sector.'This'means'we'talk'your'language'and'understand'the'business'impact'of'our'solution.'''' Banking Insurance HourlyT&M Application Development .NET, Java,?PHP/LAMP,?C/C++ Amazon, Windows?Azure, Salesforce Ios, Android,Windows?Phone,?Blackberry,?HTML5 Ruby?on Rails, Python,?Embedded Software, Databases, Sharepoint,?SAP, Microsoft, Oracle, Other Technologies Application Testing Application Support IT Consultancy Project Management Business Analysis Fixed Price Nearshore Agile System Integration Information Security EnterpriseMobility Web Applications CRM?&Loyalty MobileApplications BusinessIntelligence Cloud Strategy eCommerce?Development Cloud Migration Big?DataConsultancy Big?Data?Dashboards Iterative Waterfall Prototyping Onshore Combined SLA?driven Team Augmentation Dedicated Team Leasing ITC Retail eCommerce Travel Healthcare Media B U S I N E S S S O L U T I O N S Industry Expertise Commercial Models Engagement Models Delivery Models Discrete Solutions Core Technologies Core Services
  27. 27. • Our'client'list,'representing'key'industry'sectors,'reflects'Euro'IT'Groups’'ability'to'deliver'high'quality,'on'time,'services'to' organisations from'worldwide'recognised brands'through'to'innovative'startups.'Euro'IT'Groups'adaptability,'based'on' repeatable'processes,'is'just'one'of'the'reasons'these'organisations choose'us'as'their'IT'specialists. • Each'of'these'clients'can'be'referenced'and'our'specific'engagements'with'them'are'captured'as'Case'Studies.'' • These'clients'and'our'successful'engagements'are'the'reason'why'we'can'be'confident'we’re'the'right'choice'as'your'IT' specialist. CLIENTS Banking, Financial &'Leasing Travel'&' Accomodation ITC STARTUPS BPO OTHERS Retail'&' Wholesale eCommerce Insurance Healthcare
  28. 28. Our*Clients Banking, Financial &'Leasing Travel'&' Accomodation ITC STARTUPS BPO
  29. 29. OTHERS Retail'&' Wholesale eCommerce Insurance Healthcare Our*Clients
  30. 30. TECHNOLOGY • Euro'IT'Group’s'unique'structure'means'we'have'access'to'every'IT'application'technology'you'may' require,'from'traditional'technologies'in'the'Java'and'.Net space'to'leading'edge'technologies'driving' innovation'in'areas'such'as'Big'Data,'business'intelligence'and'Mobile'. • Maintaining'up'to'date'skills'in'such'a'wide'variety'of'technologies'is'practically'impossible'for'an'in' house'team'and'traditional'vendors'are'constrained'by'their'structure'and'existing'teams. • By'taking'a'refreshing'approach'to'our'organisations,'Euro'IT'Group'can'confidently'engage'you,'the' client,'from'the'starting'point'of'being'technology'agnostic.'We'will'work'with'you'to'understand'your' problems,'challenges'and'requirements'and'only'then'agree'what'technology'solution'is'right'for'you. • The'technologies'on'the'right'reflect'our'current'skills,'but'we'will'constantly'enhance'this'to'take' advantage'of'new'technologies'entering'the'market.
  31. 31. TECHNOLOGY
  32. 32. PARTNERSHIPS
  33. 33. Why*us Proven'track'record'in'delivering'complex'projects We'offer'a'well'balanced'blend'of'technology'skills,'domain'knowledge,'hands'on'experience,' effective' methodologies,' complex'language'skills'and'a'great'passion'for'converting'business'ideas'into' technical' products Western'business'culture,'excellent'English'language'skills,'French,'German,'Italian,'Hungarian' speaking'resources Convenient'locations'and'favorable'time'zones Proof'of'capability'based'on'low'cost'pilot'projects Capability'for'fast'project'initiation'and'delivery Well'defined'and'documented' software'development'process High'focus'on'staff'trainings,'employee' satisfaction'and'an'effective' recruitment'process'– stable' qualified'teams
  34. 34. CONSOLIDATED OUTSOURCING Contact:'office@euroitgroup.com

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