9 IT outsourcing trends to watch in 2013

By Stephanie Overby, CIO |  IT Management, outsourcing

"More and more customers have in-house outsourcing experience," says Shawn Helms, partner in the outsourcing and technology transactions practice of law firm K&L Gates. "Most major organizations have done many large outsourcing transactions."

Back then, they brought in armies of consultants and lawyers. Not in 2013. "More and more organizations will try to go it alone and perform major outsourcing transactions without the assistance of external consultants or lawyers," says Helms.

4. Flexible Pricing Matures

This year Jason Krieser worked on multiple deals with customers negotiating for-and getting-90-day payment terms. And that will become more common in 2013. "Customers are pushing very hard for this as a tight economy has customers managing cash flow at every opportunity," says Krieser, partner with the law firm K&L Gates.

Expect providers generally to give in more to demands of pricing flexibility for IT services in the new year, says Filippone. "Look for transaction-based pricing to evolve in order to support improved process automation, and healthy innovation pools to fuel early stage investments in automation and cloud-based technology."

[Related: 5 Ways to Build Better IT Outsourcing Relationships]

5. Third-Generation Deals Enter Uncharted Territory

As mature outsourcing deals come up for renewal, customers will face novel challenges. Those that are swapping providers may find the transition is as difficult as the initial outsourcing, says Helms of K&L Gates. And European companies will have to deal with acquired rights directive (which requires each member nation to provide protection for employees in the event that some part of the business in which the employee works is transferred to another entity) when considering a change in vendor. transfers from one service provider to another service provider.

"Most customers will resign with their incumbents given the operational risk and financial constraints associated with moving to a new supplier," says Pillsbury's Oser

6. The Service Integrator Model Is Tested

This year saw the cautious introduction of the service integrator model, in which one provider manages the rest. "Time will tell if they will work, despite the best advice in structuring," says Krieser of K&L Gates. All eyes will be on the state of Texas, one of the first IT organizations to give it a go.


Originally published on CIO |  Click here to read the original story.
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