IT outsourcing customers get what they pay for, not what they want

By Stephanie Overby, CIO |  IT Management, outsourcing

In order to move beyond the status quo, both IT outsourcing customers and service providers need to step up their efforts. "Quality service providers must make real investments in talent to help their ambitious clients beyond the 'old world' cost-arbitrage outsourcing model to one that is delivering value based on current business objectives and outcomes. [They] must help provide direction and focus to their clients' roles and career direction," says Fersht. "Enterprises must be continually inspired by their service providers' talent and capabilities."

There should be continued opportunities to elevate those outsourcing relationships in the coming years. According to HfS Research's first quarterly market index report, the IT outsourcing industry should see 3.5% growth in 2012 and sustain a 4.7% compounded annual growth rate through 2017.

Tight IT budgets will force more IT organizations to consider outsourcing to cut costs and fuel new IT investments, according to the report. "2013 will see a maturing of organizational approaches to outsourcing and shared services," says Fersht. "Gone are the excuses. Now is the time for execution after the recent years of uncertainty."

Stephanie Overby is regular contributor to's IT Outsourcing section. Follow everything from on Twitter @CIOonline, Facebook, Google + and LinkedIn.

Read more about outsourcing in CIO's Outsourcing Drilldown.

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