Welcome Selective Outsourcing



Future state of technology adoption would have a profound yet positive
impact on several IT and telecom verticals. The recent Orange Business
Services’ survey supports the same. The survey suggest huge
transformations taking place in IT and telecom verticals at a global
level.  

According to Patrick Pax, Solutions Marketing – Large
Projects Management and Green IT, Orange Business Services “A
key transformation that would be seen on a global level would be the
way companies will source their telecom and IT infrastructure in coming
years. Companies would move to the so-called ‘selective outsourcing’
approach and there would be no more mega-deal
outsourcing”.  One of the challenges that companies
globally are facing is cost management. But this is not driven by
financial crisis. This is because of the rapid transformations and
technology adoption taking place in IT/ITeS and BPO services. Therefore
associated cost management is very important.

Adds Sourabh Sanghoee, Head, Consulting and Solutions Integration,
Orange Business Services, India, “We see a similar situation
happening in emerging markets such as India as well. A lot of growth is
happening in the future state of technology adoption such as VoIP,
ToIP, virtualization, and video conferencing. One of the reasons why we
see a growth in video conferencing is the experience in real
time”. The Indian market has been driven largely by the BPO
industry. Even in the enterprises the newer technologies are picking up
at a rapid pace.  According to Sourabh, “This is the
right time for enterprises to switch over from the traditional EPABX to
newer technologies such as video conferencing, VoIP, and integration
with unified communications”. Selective outsourcing will be
key for Indian IT businesses.

Around 80 Fortune1000 multinational companies were surveyed, conducted
by Adcroizen Partners on behalf of Orange Business Services. It was
found that three out of four companies saw reduction of costs as the
key driver for IT and telecom transformations. Mergers and acquisitions
and global expansion is also seen as another key driver for IT and
telecom transformation in the next two years according to the global
CIOs. Other key drivers include standardization across the company and
the quest for efficiency in companies. A clear trend is also towards IT
and telecom organization centralization. More than 50% surveyed
companies have fully centralized their decision making process, vendor
management, infrastructure design and operations. Around 68% companies
surveyed said that they have centralized their data centers. However an
exception has been the retail banking sector where it can undertake
less data centralization due to the regulation protecting confidential
data of the customers.

Key strategies that are adopted by Indian IT companies is to address
domestic markets. Also as a cost control measure, several companies are
moving from high cost locations i.e. from from Tier 1 to Tier II and
Tier III cities where the infrastructure is the same but the
investments of setting up the infrastructure goes down. The data center
market in India saw a huge explosion in terms of adoption not only in
the private sector but also in the public sector.

IT and telecom are considered strong enablers for successful expansion
into new and emerging markets, bringing corporate processes and
applications to new subsidiaries across the world, and driving IT and
telecom transformation in the next two years. 

Leave a Reply

Your email address will not be published. Required fields are marked *