If there’s one thing that the service providers I’ve spoken to recently would be likely to agree on, it’s that 2010 has not been easy – not by a stretch. Uncertainty continues to hold back the wild growth that many predicted. But the possibility that customers are beginning to grow restless with traditional outsourcing models is even more intriguing.
“While there is significant interest in conventional outsourcing, a growing number of buyers are also exploring options like virtual IT infrastructure and software as a service”, noted managing director of Equaterra’s global research, Stan Lepeak. Equaterra’s Q2 research showed quite convincingly that the economy is gradually becoming less of a driver for traditional outsourcing deals and customers are investigating the alternatives.
Meanwhile, TPI’s quarterly index painted a similar picture of a slow and uneven recovery for outsourcing. However, buried within that is the figure that suggests that 78% of the company’s clients have had internal discussions about cloud computing. Equaterra, meanwhile, found that 53% of service providers reported software as a service deals already under way.
For some this will insinuate the much-heralded rise of cloud computing. But, while this may well be the case, not all companies are keen to adopt potentially risky technology simply because they’re there. The abundance of these conversations could also be interpreted as a sign that the current fading interest outsourcing deals is giving way to enthusiasm to ask what else providers can offer. This could set the scene for a jolt in the adoption curve on some of the fresher models.
And not just the adoption of cloud services, but in areas like BPO, where outsourcing relationships are much criticised by various commentators who feel that they are not innovative enough, or are simply outdated models. There’s clearly scope for development.
A few weeks ago, I blogged about outsourcing not meeting expectations for growth. I’d argue that there’s a lot of data in these reports released this week that suggest that change may be around the corner.
Steve Hall is senior staff writer of Procurement Leaders. To find out more about the magazine, click here.
Subscribe
Leave a Reply