Customers Increasingly Looking to Outsourcing as a Means of Transformation

This IDC study provides vendors, whether services or technology, with an overview of market feedback on customer buying patterns when it comes to what is labeled as "transformation," and, in particular, transformation as part of outsourcing/managed services engagements. This study, which interviewed both LOB and IT executives on the same set of factors, highlights key market trends around transformation as related to such issues as the optimal sequence of transformation, drivers and challenges as related to transformation, and type of transformation they prefer to pursue in the next couple of years. This study also provides vendors with key steps that they need to consider when looking to offer transformational services as part of outsourcing opportunities.

"Traditional outsourcers looking to offer transformational types of services to customers that want to outsource need to consider the requirements of embedding transformation as part of an outsourced deal, understand the impact of transforming their customers to newer technology models, and look toward transforming their own businesses with the focus on building outsourced businesses using newer service models such as SaaS and cloud computing," said David Tapper, IDC Program VP, Outsourcing, Utility, and Offshore Services. "While there will be considerable opportunities to provide transformational services as part of outsourcing engagements, those players that simultaneously build a long-term strategy to change their own business models to align with the shift to newer utility-based service models will be better positioned for long-term growth."