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By: Cliff Saran
Computerweekly.com
Published:16 Apr 2008 16:29
IT directors and chief information officers must develop strong
supplier-relationship management skills to increase the business value
of outsourcing.
Speaking earlier today at the Outsource World conference in London,
Forrester analyst Euan Davis said the priority for global outsourcing
was no longer about cutting costs.
"Labor arbitrage won't count anymore," Euan Davis warned. He said CIOs
would no longer simply base their outsource decision on labor costs.
"Businesses will have an insatiable desire to optimize processes and
reduce [operational] costs," he said.
Forrester Research predicted that, by 2015, most outsourcing contacts
would be based on higher-level services such as managed services and
business process, rather than on man-hours of programming. Davis said
CIOs would need to support this shift in outsourcing by making sure
their businesses established strong governance processes and
change-management procedures. He told CIOs the teams managing their
outsourcing contracts must be well versed in supplier-relationship
management. He also urged IT directors to ensure their businesses had
strong project and programme-management skills.
Forrester Research has found India is suffering an IT skills crisis and
the staff attrition rate is running as high as 50% in some Indian
offshore operations. Davis said Indian outsourcing providers would move
up the value-chain to provide greater business expertise to companies in
the long term.
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