2014 the year outsourcing became cool again

Author :cdalog     Category : News     6 Nov | No Comments

With 2014 drawing to a close, after a year of major IT Transformation and change management activity, I had some time to read a report from Information Services Group (ISG), where the market intelligence firm was reflecting on the last year (2014), where it laid down it’s predictions for 2015.

2015“Confirming my observations from a number of large global companies that are preparing to escalate their IT Transformational programmes”, said Craig Ashmole, Founding Director at London based IT Transformation consultancy CCServe Limited, “CIOs need to change their world and move out of their comfort zone, and start to manage the business needs delivering services or solutions that drive revenue and grow their core business. They would be best to get out of the empire building world of the years gone by.”

One of the most notable trends of 2014 was that outsourcing was no longer a Northern European phenomenon; in France, annual contract value (ACV) increased 250% year-on-year. Indeed, ACV reached its highest levels ever across the south of the continent. The ISG report said that it was also witnessing a shift towards ‘deriving greater value from contracts’. Something that’s been at the top of the CIO agenda over the past 18 months.

“Whether this is through Service Integration and Management (SIAM) or utilising Total Business Management (TBM) tools, CIOs are beginning to step away from simple IT management and are moving towards a role that has a greater focus on business alignment, which is critical for maintaining their relevance to the organisation,” the intelligence provider said. “Looking ahead, we expect that the outsourcing market will continue to grow, as organisations slowly regain confidence post-recession,” ISG predicted. “The challenge for buyers will be to understand how they can get the most value from their outsourcing efforts, and to understand the real business impact. We believe that this will start to gain momentum in 2015.”

“CIOs are looking to not be marginalised, and need to sit at the board table as a priority, something forward thinking CEOs will understand, technology is something the business needs as a mechanism to deliver business growth if done correctly.” Craig Ashmole goes on to say.

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