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Irene Pimentel

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Irene Pimentel is an IBRS analyst who focuses on news and information on the global IT Outsourcing market. Irene provides IBRS clients with up to date information on all outsourcing deals that are taking place helping our clients understand who is winning business in what markets. With over 10 years experience as a management consultant, Irene has worked with some of Australia's largest blue chip companies and public sector organisations. Irene has also worked as a research manager for an IT sourcing consultancy, providing clients with targeted intelligence and advice for their specific IT sourcing transactions.

Conclusion: this month, vendor collaborations for both development and education have been prominent. With increasingly complex IT environments and multiple vendors providing a range of services, it is necessary to understand the flow-on effects of adding new systems to technology infrastructure as well as possess resolutions to difficulties which can have a dramatic impact on business and company IT. Understanding, developing strategies, and establishing response measures for critical issues which can arise in specific environments is a necessity. Collaborative development and educational initiatives help to support these needs. In March, IBRS’ James Turner will be speaking in a webinar dedicated to data loss prevention, with a focus on strategic measures that cater to complex and unique environments. This type of information and awareness is invaluable to professionals, particularly when infrastructure complexities increase with the engagement of multiple providers.


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Conclusion: This month has seen an increase in executive appointments in ICT companies, as well as 2015 industry forecasts. Most interesting is an expected rise in outsourcing contract renegotiation to $100B, driven in part by a preference for multi-sourced contracts, as it becomes easier to respond to vendor management and governance issues, as well as obtain more stable contractual models. These improvements are expected to reduce difficulties and complexities associated with establishing and maintaining a number of agreements at once while retaining cost benefits multi-sourcing can provide.


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Discussions regarding emerging trends in 2014 and forecasts for 2015 were prominent this month.  The need for improved security solutions and cloud offerings have been identified as critical issues that emerged in 2014, with 2015 forecasts focused on increased third-party vendor engagements and expansion of product offerings, delivery models and contractual structures.  With large financial investments in outsourcing and the greater demand for business outcome-based contracts it is expected vendors will be altering current approaches to service provision.  


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This month, the Lufthansa/IBM infrastructure outsourcing agreement, valued at $1.25B was particularly significant. These “big bang” outsourcing agreements have pared back the past few years because of difficulties associated with long-term contracts, such as vendor lock-in and expense, especially when project objectives are not met and client/vendor disagreements arise. 


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October has been a great month for ICT outsourcing contracts, with a wide range of agreement types, vendors and buyers representing different industries.  Particularly interesting is the high number of smaller providers establishing a real presence in the market.


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New service contract agreements have been prominent the past month, particularly with the Department of Defence. The Department of Defence has traditionally engaged in high volume, high value, complex projects and does invest a lot in IT to support its critical functions.


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This month there has been a significant increase in senior appointments, restructures, collaboration and purchases in the ICT industry. In particular, service providers are acquiring or partnering with technology vendors to integrate specialised and high quality products with their services. This highlights the demand in the market for access to new and developing technologies and associated services to take advantage of them. In order to stay competitive, service providers have been forced to move beyond basic service provision and include technologies as part of their service offerings.


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Discussions regarding unknowns that arise from multi-layered, hybrid and increasingly complex ICT environments have been prevalent this month. There is a recognition that, because of these variables, traditional tools and delivery models are often insufficient to ensure ICT environments function efficiently. Reviews indicate that difficulties can arise because of failures in the implementation of management and operational protocols as well as the critical tools needed to bind the many facets of an ICT environment together, to ensure operational effectiveness which all users can access and understand. For instance, user authentication systems that now require careful consideration and planning are often not feasible as they can require very specific expertise for just one small aspect of a large environment. IBRS Analyst James Turner will be discussing this particular issue in relation to authentication solutions, as well as potential response measures in a webinar to be held on July 31st.


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This month’s outsourcing deals were especially interesting, showing that the range of services available to outsource and the ways customers are using them has broadened and borders for providers are being eliminated. Vendors are becoming more specialised, as the trend to target outsourced services at particular business functions or objectives, to satisfy customer needs, has emerged. This has resulted in vendors adopting more flexible products, services and delivery models to accommodate a wider range of customers and their varied requirements. This is becoming clearer with potential customers, such as the Department of Health specifically stating it wishes to explore different service models, technologies, IT practices and market capabilities when searching for a new service provider.


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Particularly prominent this month was the high level of new senior appointments and employee rationalisation in the IT industry. This highlights the critical nature of taking into account practical, business issues as well as technological developments to maintain efficiency, competitiveness and targeted service provision for a company’s internal ICT customers, as well as for service providers catering to external clients.


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