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Sourcing & Staffing

Conclusion: Organisations that receive competitive and insightful responses to their RFTs for products and services know they do not come their way by accident, but due to sound planning and conscientious execution of the bid process.

Conversely, organisations that rush the bid process and give potential suppliers little warning of the RFT’s availability and insufficient time to respond are likely to find fewer than expected responses, or even an empty tender box, on the closing day.

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).

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.

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.

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

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.

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.

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)

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.

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.

In the News

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