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Outsource magazine: thought-leadership and outsourcing strategy | April 17, 2014

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Doomed? Thoughts on trends in the ITO space

Doomed? Thoughts on trends in the ITO space
Max Buchler

There’s no doubt something’s happening in the IT market. From now, and for the coming years:

  • The heavy overcast sky caused by a conspicuous buzz breaks up to clear commodity cumulus services in a blue hybrid sky of IT solutions. In other words: the cloud buzz drops off; cloud becomes a commodity service in various types of IT solutions.
  • Products/services to orchestrate IT solutions are ready to use and continue to evolve.
  • Smaller service providers and brokers, shaped to manage cloud solutions, enter and challenge the market.
  • Non-IT service providers (call centres, management etc) see an opportunity to enter and challenge the IT service provider market.
  • Non-IT departments adopt cloud services they want and need. Adoption and value unknown to the IT department.
  • Large worldwide CSP offers great infrastructure, platform, software and BP services. Including management, provisioning and reporting tools.

In my mind…

I ask myself, will it be a true shift where traditional IT outsourcing providers become outmaneuvered by smaller service provider, cloud brokers, in-house IT departments and non IT service providers acting as orchestrators of future hybrid IT? A shift caused by:

  • Smaller SPs are able to change when the market does. Faster and shorter step to new decisions.
  • Smaller SPs are able to operate, manage and orchestrate solutions earlier exclusively reserved the larger ITO providers.
  • Non-IT service providers from mature branches bring money, resources and trimmed processes in to a sometimes immature IT world.
  • In-house IT departments are able to orchestrate their IT solutions. They don’t have to focus on fundamental operations provided by IaaS, PaaS and A-/SaaS; they are able to concentrate on core/special services and work more innovative to bring value to core business. To become the internal trusted cloud broker to avoid de-centralised procurement/adoption of products and services.
  • The act of “Fat and happiness”: instead of working innovative (know, predict and tell what the customer needs in the future) ITOs only focus on now!
  • ITOs don’t use partnership to build success. They build everything on their own.

I predict (know?) CIOs and IT departments are doomed if they don’t open up their environments and minds – but how about ITO and offshoring?

I can tell you what I predict, but I won’t (even though I think you know what I predict). This time I would like to hear and discuss your opinion (truth?) – humble or not. If not in public send me a mail or contact me on Twitter (see my columnist page for links).



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