Sourcing Monthly February 2019 – March 2019
Conclusion: This month, discussions regarding rising costs associated with outsourcing have been prominent. Whilst benefits from outsourcing in the form of efficiency and financial savings have been clear for some time, customers can find that savings are not as high as expected due to increased complexities associated with new offerings and associated implementation. For instance, customers that moved to the Cloud for storage and compute solutions benefited from the large number of vendors in the market and more competition. However, as the market has matured, customers demand more sophisticated offerings to leverage new technologies such as artificial intelligence and machine learning. As a result, infrastructure and associated services have become more costly, coupled with add-ons and Software-as-a-Service costs. Whilst cost benefits remain a priority for customers, it is also important for thorough cost optimisation reviews, and the engagement of specialist services to rationalise and assist with the management and restraint of outsourcing expenses.