The most recent offshoring survey from Horses for Sources suggests that companies will have less use for traditional IT outsourcing.
When it comes to IT services and BPO, it’s no longer about “location, location, location”, it’s now all about “skills, skills, skills”.
Instead of “commodity” capabilities (things like password resets, routine programming changes, etc.), companies want more highly-skilled, innovative capabilities. Either offshorers need to provide this, or companies will in-source those skills.
Because offshorers typically don’t focus on such “open ended” roles, analysis of the survey suggests offshorers will have less business, at least new business:
aspirations for offshore use between the 2014 and 2017 State of the Industry studies, we see a significant drop, right across the board, with plans to offshore services.
an increasing majority of customers of traditional shared services and outsourcing feel they have wrung most of the juice offshore has to offer from their existing operations, and aren’t looking to increase offshore investments.
What with the large volume of IT offshorers companies do, and how this outsourcing tends to control/limit IT capabilities, paying attention to these trends can help you predict what the ongoing “nature of IT” is in large offshorers.
This fits the offshoring and outsourcing complaining I hear from most all software teams in large organizations.
To me this read as “yes, we need to refocus IT to help us create and refine new business models.” You know, “digital transformation,” “cloud native,” and all that.
Source: “Offshore has become Walmartas Outsourcing becomes more like Amazon”