GTM Group

IT Outsourcing Tends to Watch on 2013. Companies are not tolerating number crunching negotiators and service level agreements that have hampered their organizational value. Development centers will be required to continue to be competitive but will also be required to provide a specific level of control, communications and high quality. Flexible pricing with extended terms and transaction-based pricing will evolve. Swapping providers as contracts renew may prove to be as difficult as setting up the initial outsourcing. The service integrator model will begin to emerge keeping the same providers within the new agreements. Failed projects will become the number one area for disputes. Expect China to purchase a large sourcing provider that will create a major power shift. Companies have finally realized that some services are better entrusted to employees and the continued escalation of the offshore rates is no longer a differentiator. Low level and routine tasks will remain with providers but high value positions will move back inside the corporate walls. Read the full article: Overby, Stephanie “9 IT Outsourcing Trends to Watch in 2013” CIO Magazine December 18, 2012:Online.