A new report from Gartner Research Firm
IT Outsourcing is not going away anytime soon, but a new report from Gartner Research states that the market is in for some big changes. The report predicts that one in four business-process outsourcing firms will disappear within the next three years.
The article in InformationWeek gives advice to CIOs who wish to initiate a new IT Outsourcing contract on warning signs to look for in your prospective BPO partner that would indicate this firm may not be able to fulfill any new contract:
1. Are they losing money?
2. Are they winning new business?
3. The loss of marquee clients.
4. Poor capitalization is impeding growth.
5. Toxic exposure to tainted financial firms.
6. Lock down your exit strategies.
In another article in EconomicTimes I read that IBM will goble up half of India’s IT outsourcing business in 2010.
This is not to suggest that the offshore IT outsourcing business is coming home. IBM’s business is international. With IBM awarding one-half to 1 billion dollar contracts, many India firms will not be able to compete in delivering hardware, software, IT consulting services and integrated business solutions. IBM is one reason that 25% of IT BPO firms will meet their demise within the next three years.
IT Outsourcing is not going away anytime soon, but a new report from Gartner Research states that the market is in for some big changes. The report predicts that one in four business-process outsourcing firms will disappear within the next three years.
The article in InformationWeek gives advice to CIOs who wish to initiate a new IT Outsourcing contract on warning signs to look for in your prospective BPO partner that would indicate this firm may not be able to fulfill any new contract:
1. Are they losing money?
2. Are they winning new business?
3. The loss of marquee clients.
4. Poor capitalization is impeding growth.
5. Toxic exposure to tainted financial firms.
6. Lock down your exit strategies.
In another article in EconomicTimes I read that IBM will goble up half of India’s IT outsourcing business in 2010.
This is not to suggest that the offshore IT outsourcing business is coming home. IBM’s business is international. With IBM awarding one-half to 1 billion dollar contracts, many India firms will not be able to compete in delivering hardware, software, IT consulting services and integrated business solutions. IBM is one reason that 25% of IT BPO firms will meet their demise within the next three years.
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