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Sourcing & Staffing

This month’s outsourcing highlights are especially interesting – there has been lots of activity in buying and selling outsourcing businesses and specialised business units. There have also been a lot of announcements about new service offerings, or expanded service offerings by vendors. You’ll see examples of this in the general news section, as well as an article that talks about BPO firms less likely to experience growth if they have a singular focus, and not several service streams, like IT services. All these things show the need for diversification in outsourcing service offerings, as well as streamlining, expanding and very targeted offerings in specialist industries (like health care, mining or cloud specific etc).

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Not a lot of deals this month, but a couple of really big deals that are interesting. There was a lot more general news, and we’re at the beginning of another year so industry trends and review of developments in 2010 were a focus.

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While there’s been a lot of news this month, it mostly happened in the first two weeks of Dec., the xmas season’s impact hasn’t ever been this obvious – repeated news over a couple of days is common, but we had news repeated throughout the whole four weeks! That, and some very strange deals and news items popping up definitely made things interesting. On a practical level, there were lots of tenders and talk about data centre outsourcing this month.

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Not too many outsourcing deals the past month, but lots of talk about implementations, collaborative projects, company buyouts etc.

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Conclusion:When assessing potential service providers, rate highly those whose solution clearly meets requirements and who have capable IT professionals ready to implement it. To reflect the rating assign a higher evaluation weighting to providers meeting both tests and a lower weighting for attractive pricing, previous experience and availability of proprietary methodologies.

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The cloud computing economic model is expected to bring significant rewards – apparently. Those rewards may be possible, but the quality of analysis to demonstrate that the cloud paradigm will yield an ever-growing margin is far from assured. The assumptions underlying the economics of the cloud are tenuous and therefore the promotions and promises should be treated with caution. More analysis has to be done to evaluate how and where advantages are achieved, and at what cost and margin. Without sufficient rationale, empirical data and analysis, the hype will burst once the ambiguous and unclear economic outcomes emerge, just like other technology bubbles before.

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Lots of deals this month! But the deals are definitely interesting, not your standard outsourcing deals. My interpretation of the types of services being taken up shows a trend towards obtaining highly focused and specialised services when outsourcing, with vendors providing the combination between base products and services and implementing them for defined and set business functions (not just business or IT areas)

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This month’s deals have been pretty standard, but there have been lots of tender and project announcements and news is out of control! Lots of great outsourcing forecasts, research results and a little bit of gossip made for a great news month.

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Conclusion: Many an incoming CIO stumbles between acceptance of an employment offer and the first few months in the job. Often for the CIO it seems that there is so much to do it’s difficult to know where to turn and what to focus on. Coupled with this, the incoming CIO usually has an overwhelming sense of desire to do a good job and achieve recognition.

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There have been a few interesting outsourcing deals this month, though project plans and public sector tenders have been more pronounced. There has also been a lot of discussion re plans for e-health, everyone seems to be jumping on the bandwagon!

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In the News

New cyber security rules reset $8b cloud marketplace - Financial Review - 26 July 2020

Philip Nesci, IBRS adviser and former CIO, has warned that agencies will need to get their information management sorted out to capitalise on the new rules. ‘‘Agencies need to identify their...
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Australia can build a culture of employee-led innovation - DropEverything - 24 July 2020

IBRS advisor Dr. Joseph Sweeney discusses why it falls to individuals to look at improving their work in a post-COVID world. Dr. Sweeney comments on the need to build a culture of innovation that...
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Outdated work from home policies bog down Aussie businesses - Computer Reseller News - 6 April 2020

IBRS analyst Dr. Joseph Sweeney provides best practice-advice on working from home in the current pandemic situation. Dr. Joseph Sweeney discusses current working from home policies which are...
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Centrelink crashes under demand for crisis payments - Australian Financial Review - 23 march 2020

IBRS workforce transformation advisor Joseph Sweeney said many government departments had to navigate difficult IT environments that were only part-way through their digital transformations, with...
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Inside EY's security work at ANZ - Australian Financial Review - 3 March 2020

"There is more security work to go round than there are resources. So I don't think the market is that crowded. It's important to remember that security is not something you buy and then it's done;...
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