This IDC study uses feedback from buyers of outsourced services to provide a view of how their expectations have changed dramatically over the recent years. These expectations involve looking for providers that have a long-term strategy (e.g., five years) for their outsourcing business, that can enable changes in business requirements more quickly, and that can ensure service delivery involving consistency across all global locations including SLAs through the entire stack and assurance of delivery to the "last mile" (the network). Combining this feedback with existing IDC research, this study examines the impact of these changing expectations on outsourcers and the need for service providers to determine factors such as breadth of control and ownership across the stack of technology and across the life cycle of services and "functional" capabilities (e.g., CRM, SFA, ERP), the structure of their business model based on the future "end state" of outsourcing, and the impacts of these changes on partnership ecosystems, particularly technology suppliers, as well as the financial structure required to provision cloud-based services.
"Success for vendors looking to compete as providers of cloud-based services requires that they need to not only understand the end-state model of a cloud service business but also build a long-term strategy and business model that can adapt through evolutionary stages as services shift from traditional delivery models (e.g., more labor oriented) to cloud-based services involving more automated provisioning of services," said David Tapper, VP, Outsourcing and Offshore Services at IDC. "As part of building this long-term strategy, outsourcers and service providers need to address a broad range of factors such as the potential changing structure of the business model of cloud services (e.g., vertically integrated versus specialized), the increasing need for creating a cloud factory and an integrated digital services supply chain, moving to a sense and respond set of capabilities, and aligning with the customer need to outsource as they increasingly transform their internal environments to cloud-based capabilities."
Message from Large Enterprises and Start-Ups to Providers: Helping Customer...
November 07, 2011
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