Demand remains strong for outsourcing of information technology services, but buyers are requiring more from their providers according to a new study from client, Alsbridge.
The survey of 300 corporate buyers indicates that quality remains a big concern for companies using offshore service providers.
The research also found that buyers continue to experience numerous challenges with the IT providers and are unable to realize all the benefits associated with IT Outsourcing (ITO).
While they are largely achieving their cost reduction goals, the biggest gap between benefits sought and realized was found in hard-to-measure areas, such as innovation, speed and flexibility.
In the process of working with the Alsbridge team, I’ve learned that providers focus on delivering to a contract in many cases.
But there is more to the story here: corporate buyers of outsourcing services need to build innovation, flexibility and relationship management into their working interaction with providers. These are difficult to build into the language of the contract, but as Ben Trowbridge points out, it should be dealt with as a part of governance. It’s a key element of our messaging strategy that we continue to focus on.
Alsbridge’s Market Reality Assessment 2.0 Helps Identify Gaps in Perceived Contractual Position and Relationship
In related news, Alsbridge has released version 2.0 of its Market Reality Assessment benchmarking tool that helps customers and providers identify the gaps in their perceived contractual position and relationship. Trowbridge says measurement tools like the MRA are essential to establishing the outsourcing relationship, monitoring its health, and supporting negotiations for renewals or contract changes.
To learn more about the Alsbridge Market Reality Assessment and contracting best practices, click here.