CIOs demand more from their outsourcers

CIOs are dissatisfied with the value they get from their IT outsourcing contracts and want their suppliers to raise their game. That is the conclusion of two new pieces of research into outsourcing trends.

outsourcing

CIOs are dissatisfied with the value they get from their IT outsourcing contracts and want their suppliers to raise their game. That is the conclusion of two new pieces of research into outsourcing trends.

A survey of around 450 global CIOs by accountancy practice KPMG found that 71% of CIOs intend to improve the ratio of price to quality they receive from outsourcing contracts in the coming years, and nearly 90% plan to increase the pressure they place on suppliers.

At the same time, the survey found that outsourcing was not part of the strategic agenda, which KPMG took to mean that it has become “part of the day-to-day
activities for most IT departments”.

Meanwhile, a recent report from IT analyst Forrester Research analysing the Indian offshoring industry concluded that customers want their suppliers to deliver greater business value, to take some of the risk in outsourcing engagements and to come up with innovative new ideas for their business.

The report added that the largest Indian providers are meeting this demand with novel ‘engagement models’ and innovative offerings. Information Age’s recent feature ‘Outsource evolution’ examines some of the alternative approaches on offer.

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