2011 european it outsourcing predictions and expectations
DESCRIPTION
Judging from the perspective of ITO services buyers and services providers, the following trends and changes are anticipated in 2011TRANSCRIPT
2011 European IT Outsourcing
www.softheme.com
Predictions and Expectations
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Table of Contents
Trends and Changes in 2011 Services Buyers
Services Providers
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011
An increased demand for outsourced IT services from the public sector
Services Buyers
Judging from the perspective of ITO services buyers, the following trends and changes are anticipated in 2011:
A shift from mere cost saving to access to qualified and lower-cost ITresources
Nearshoring will hit the mainstreamService integration will help achieve innovation
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011
An increased demand for outsourced IT services from the public sector.
Services Buyers
In 1Q 2010, public sector contracts stood at over €9 billion and are expected to increase in 2011.
In the UK alone, public sector gained a 75% share in the nation’s outsourcing spending
It is expected that the demand to explore and utilize outsourcing opportunities in Europe will increase due to recent turmoil in such countries as Ireland and Greece as well as economic uncertainties in other states.
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011
A shift from mere cost saving to access to qualified and lower-cost IT resources.
Services Buyers
In 2010, Western Europe faced a significant shortage in IT skills and resources.
In 2Q 2010, staff skills in C#, SQL, .Net and Java were in short supply, with the number of related jobseekers in decline.
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011
A shift from mere cost saving to access to qualified and lower-cost IT resources.
Services Buyers
2010 showed a significant increase in IT workforce and skills in Eastern Europe:
More than 20% of outsourcing companies admitted their plans to continue outsourcing their IT function in 2011 to get access to better qualified IT resources outside their home countries.
12.33%
9.51%
Romania Ukraine
Growth in the number of IT specialists
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011
Nearshoring will hit the mainstream.
Services Buyers
In 2011, more Western European clients will be outsourcing their IT nearshore (to Central and Eastern Europe) or nearshore and within own country.
Factors that will be driving companies’ choice of nearshore outsourcing in 2011 are:
→ geographical proximity→ strong R&D potential of former USSR nations→ strong language skills
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011
Service integration will help achieve innovation.
Services Buyers
In 2010 and previous years, many companies failed to achieve innovation in their outsourced operations, because they typically thought that transferring an IT
In 2011 more Western European IT leaders are expected to realize the importance of integrating the outsourced project management, orchestration and delivery, thus gaining full control of their sourced projects.
project to be completed by the 3d party should enable them to focus on their core competencies.
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011Services Providers
Judging from the perspective of ITO services providers, the following trends and changes are anticipated in 2011:
An increased focus on SMEsInnovative outsourcing engagement models will hit the mainstreamNo more client-silo approach
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011Services Providers
An increased focus on SMEs.
In 2011, an increased demand to adopt outsourced IT services will come from the SME segment and providers should be ready to anticipate smaller and, thus, less profitable deals.
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011Services Providers
Innovative outsourcing engagement models will hit the mainstream.
In 2011, Western European companies will be looking for a provider with the capacity to take over the entire product or application development process, and in some cases, help manage the entire business function.
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011Services Providers
No more client-silo approach.
As businesses aim to learn more best practices by sharing knowledge with their peers across different industries, IT providers will be challenged to transform their client-silo mindsets and encourage collaboration between clients from various industry domains
www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations
Trends and Changes in 2011To conclude with, in 2011 European ITO will remain a highly demanded practice with some significant focus shifts towards
agility
processes optimization
transparency of transactions and payments
innovation
cloud
Thank you!
2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions
www.softheme.com » Outsourcing to Softheme™
Questions? → [email protected]