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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. 

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.

Conclusion: Virtual teams continue to be an accepted organisation mode as a means of grouping specialist and project resources together to achieve high quality outcomes. Recent research1 identifies that more than 40% or Fortune 500 companies currently utilise virtual teaming. Smaller organisations have found that technology tools provide the mechanisms to collaborative cost effectively. A key activity of virtual teams is collaborating on research, projects and reports. Understanding the purpose of the collaborative authoring activity, the personality preferences of the authors and the relationship of the authors can enable organisations to increase the quality of the output with less effort and in less elapsed time.

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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