4 IT Outsourcing Trends To Watch - InformationWeek

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IT Leadership // Enterprise Agility
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8/4/2014
09:06 AM
Shane O'Neill
Shane O'Neill
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4 IT Outsourcing Trends To Watch

How cloud is competing head-to-head with outsourcing more, and other developments to keep an eye on.

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Laurianne
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Laurianne,
User Rank: Author
8/4/2014 | 10:50:51 AM
Onshoring
"With domestic sourcing, you'll have higher pay rates, but you'll have a smaller, more experienced team doing the job." Important factor. Anyone care to share on your experience here?
Ajr@m
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[email protected],
User Rank: Strategist
8/4/2014 | 11:13:13 AM
Re: Onshoring
I think Capital one recently moved their server management inhouse and are managing with a much smaller but efficient team, costs will definitely be higher when compared to even an offshore center.
Ajr@m
100%
0%
[email protected],
User Rank: Strategist
8/4/2014 | 11:32:57 AM
Outsourcing methods
IT outsourcing definitely offers flexibility, outsourcing today has matured to an extent and can provide far more than what it could 10 years ago technology and market competition have helped in this regard but then again choosing right model and solution is critical to ensure an efficient and successful engagement, I work with McGladrey there's a whitepaper on our website about this very topic that will interest readers of this article Three essential IT outsourcing methods every business should know - http://mcgladrey.com/content/mcgladrey/en_US/what-we-do/services/technology/infrastructure/managed-services-it-vision/three-essential-it-outsourcing-methods-every-business-should-know.html
Somedude8
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50%
Somedude8,
User Rank: Ninja
8/4/2014 | 12:41:13 PM
Re: Onshoring
I work freelance/contract, and have seen a signifcant increase in demand for US-based, senior level talent from US-based companies in the last year or so. Enough so that rates are up significantly, and full time gigs are posted on freelance sites regularly.

What I am seeing is just one narrow perspective, one person's personal experience. But discussions with peers indicate that its not just me seeing this.
Lorna Garey
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50%
Lorna Garey,
User Rank: Author
8/4/2014 | 3:40:50 PM
Re: Onshoring
People talk a lot now about cloud ROI and doing apples-to-apples pricing comparisons. However, many IT shops never even got their arns around that process for conventional outsourcing, preferring to pretend that the hundreds of hours spent by high-priced US engineers writing requirements docs and then error-checking buggy code would have been sunk costs no matter where the work was done. 

Smart companies will learn from past mistakes when considering cloud.
Brian.Dean
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50%
Brian.Dean,
User Rank: Ninja
8/5/2014 | 3:23:50 AM
Re: Onshoring
If the in-house management of the support function is retained post outsourcing then they should be able to provide a good estimate about the advantages and disadvantages that outsourcing provided. A business needs to specializes, if a business needs to manufacture a pen each time writing needs to take place -- the business will not progress. 

Off shoring creates an added layer of complexity, because global wages are not flat at the moment and it can become difficult to assess for example, if a company is overpaying or underpaying.
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