10 IT outsourcing trends to watch in 2014

By Stephanie Overby, CIO |  IT Management, outsourcing

Fersht of HfS Research forecasts a good year overall for Indian providers. "Many clients prefer the flexibility, work ethic, innovation, and cost-friendliness of many of the Indian IT services firms to the stagnating services of many of the Western incumbents, many of which will continue to lose market share in 2014," he says. "We expect this trend to continue apace in 2014."

9. Big Deals Get Smaller. Small Deals Get Bigger

Multi-sourcing continues to be the name of the game. "Prior mega-deals will continue to be disaggregated and resourced in smaller pieces," says Wagner of Alsbridge. At the same time, however, many smaller deals will be rolled up into midsize deals as customers seek more leverage with their vendors, Wagner says.

10. Governance Gets Harder

"With increased adoption of global business services and the growing complexity and diversity of vendor portfolios, the governance function will become an even more critical capability that enables organizations to manage performance, risk and compliance," says KPMG's Lepeak. "However, most organizations will face challenges in recruiting and hiring skilled resources due to a talent shortage in the governance arena."

Stephanie Overby is regular contributor to CIO.com's IT Outsourcing section. Follow everything from CIO.com 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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