I remember attending the first technology business management (TBM) conference in 2012. Back then, the concept of this new data-driven framework, which would help measure and manage IT budgets, consumption and value, was new and exciting. Speakers and delegates talked at length about how TBM would respond to the need for financial transparency, deliver data that could drive decision-making at the highest levels, and unpack the consequences of decisions made in the past.
Not too long back, many global IT service providers were known to move delivery of IT services of their clients to offshore locations (like South Africa, Latin America or India) without informing their clients. This was seen as an internal lever to make customer contracts more profitable in a multi-year deal as services were first stabilised in a high-cost onshore delivery location before being shipped to an offshore location.
For years, the outsourcing world has been buzzing about reshoring (or "backshoring"), taking the jobs we sent offshore years ago and bringing them back to the US and Europe. Low wages, cheap property, and favourable taxes made offshore manufacturing very attractive. But in recent years property values rose, staff turnover increased, and wages just keep heading up. Despite weakening economics, offshore still made sense. Until today!
This month’s SIG Global Summit in Carlsbad, CA featured a wide range of expert speakers and engaging topics, including 1) the increasing importance of third-party risk management, and 2) the competitive imperative to leverage business intelligence from big data. Despite general consensus that these are “Important Things We Should Be Doing,” live polling conducted during well-attended general sessions suggested that not everyone is walking the talk.
I visited Cape Town and Durban recently as a guest of BPESA (Business Process Enabling South Africa) and attended the South Africa BPM Summit 2016. The summit featured local business leaders, industry influencers, and politicians eager to create jobs in South Africa by riding the wave of business process outsourcing (BPO).
Ed Hansen is a Partner at Morgan Lewis, and one of the best-known lawyers in the international sourcing and outsourcing space (as well as an occasional contributor to Outsource).
We’ve just published the latest ISG Index, which reveals that the Europe, Middle East & Africa (EMEA) market saw solid regional growth in 3Q 2016. Combined third-quarter ACV reached €3.1 billion, up 22% over the previous quarter, with traditional and as-a-service sourcing contributing equally to the gains - both up 10% year-on-year. In addition to the increase in value, the volume of activity went up. The 494 contracts awarded in the year to date represent a 13% uplift – a record high in the region.
The first driverless cars in the UK are now being tested on the streets. “Cognitive robot” Amelia is proving to be a more popular service interface with residents of the London Borough of Enfield than her human predecessors. Technology that was once the preserve of science fiction is now becoming a daily reality. The future is here, ahead of time.
Large organisations face very similar IT challenges. Regardless of industry, they need to continually innovate, increase profits, decrease costs and drive efficiencies throughout their operations.
Considering that as much as 80 per cent of an organisation’s IT spend goes towards maintaining systems and infrastructure, it’s no surprise that many business leaders are looking to migrate their IT foundations to more functional, up-to-date technologies.