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Sourcing & Staffing

Conclusion: Security leaders know that it is not enough for the security group to do its job; they must be seen to be doing their job. This need for communication between security and the business is resulting in organisations creating outreach roles. Many organisations have yet to realise that this communications gap directly impacts their risk management capabilities. While the security team may be executing its work with technical accuracy, it is not serving the true needs of the business. The key to bridging this gap is an outreach function.

Conclusion: This month has seen a number of large and high value outsourcing agreements. The Manchester United/Epson contract renewal was especially interesting and indicative of increased flexibility when vendors and buyers establish outsourcing agreements. Epson will continue to provide IT infrastructure and obtain advertising rights from Manchester United in a combined sponsorship/managed services agreement, established in 2010. These types of outcome-based, business-focused agreements which provide unique benefits to both parties can result in stronger relationship foundations, transparency, and a greater chance of success during the course of an arrangement and when resolving difficulties that may arise.

Conclusion: Prominent this month are a wide range of new projects and service offerings in the IT outsourcing industry. This growth has highlighted the necessity for flexible environments and models that can adapt to changing requirements and company demands. Recent announcements by outsourcing vendors CSC and HP to divide their operations indicates increased flexibility is required beyond not only new product models, but also business models and corporate structures. HP was founded in 1939, and CSC in 1959, with current restructures aimed at enhancing efficiency and services provided.

Conclusion: especially interesting this month was Datacom’s and the Department of Health’s infrastructure and support services agreement. In particular the service provision model which is outcomes-based with a consumption-based pricing model. These types of agreements highlight the demand for arrangements which are more transparent in order to reduce conflict, align interests, and increase contract flexibility to adapt to changes in customer needs or vendor capacities. By establishing stronger and clearer foundations, customers and vendors are more likely to have a sustainable and successful outsourcing agreement.

Conclusion: discussions regarding innovation in the ICT industry have been prominent this month, with a focus on investment in new technologies and collaborative arrangements for further development to support managed ICT services. With a dynamic and continuously evolving services landscape, there is a clear need to differentiate offerings, as well as innovate to support new service models, technologies, and changing customer demands. Flexibility is critical if vendors are to provide solutions that support the needs of its customers and the market. By combining knowledge, expertise, access to resources as well as products and services, businesses in disparate industries are providing tailored and alternative solutions to cater to market demands that are emerging at a fast rate.

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.

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.

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.  

Conclusion: To provide easy to use online client services, organisations must create cross functional teams with people who can work together to implement solutions which can be tightly integrated with back office systems, and work first time. Failure to assign the right people first time will, until it is fixed, cause tension and stifle innovation.

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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