Top 10 IT Outsourcing stories 2014

It outsourcing has had a great year. The growing maturity and acceptance of cloud based on
shook services suppliers.
With technology, such as cloud and software automation can reduce the need for more
people and depress prices, suppliers are trying to increase their business to non-linear
reduce reliance on only provide full-time equivalents.
At the same time, customers are looking to take advantage of these new technologies, but lacks many
resources. This may seem like a perfect storm, but other trends include growing appetite for
large companies, such as Astrazeneca, to bring the services back in house. In this case, the company has
global delivery centers established to give you the resources you need, but keeping control.
Here are top of the Computer Weekly IT 10 outsourcing stories 2014.

1. IBM
India staff reductions are a sign of change in the outsourcing sector
Talk of IBM to reduce its workforce based in India for 50.000 over the past three years, with more than
such as, is a reflection of the dwindling importance of low-cost agents.
The account of reduction in staff in India, although not confirmed, are in line with the change
It Outsourcing demand and delivery models. A source said Indian Tata Consultancy Services is
Now, the greatest competition from IBM Global Service.

2. Mature
Indian offshore it services companies to take larger slice of the market, as Americans Giants collapse
India it services-based companies have increased their share of the total contract value of UK private
It industry and business processes outsourcing contracts from 4% to 25% in a period of five years on
expense of service providers based in the United States great.
This is happening in all mature markets it services. Fears that offshore services represent an
security risk and continuity, and are just one form of labor arbitration, are evaporating.

3. how to
will Indian it services companies evolve and thrive?
Indian it services companies need to redesign their business so they can continue to grow in
rates experienced in the last decade, as traditional markets and service offerings get
maturity.
Research over the past 10 years from the Information Security Group revealed an increase in the
global market share of 13% for Indian it services companies, compared with a decline of 7% for your
multi-national equivalents.

4. HP
must use Division to retrieve lost ground in it services
When HP acquired Electronic Data Systems (EDS) for $ 13.9 bn in 2008 the stage was ready for YOU
giant to challenge IBM in it services sector, but little happened to cause IBM to look over
your shoulder.
After thousands of layoffs and a nearly $ 9 billion write-down, EDS is a shell of its former
ego. General Motors ‘ decision to bring
your outsourced it back home in 2012 was a high-profile example of HP Services scams
Division had to take.

5. United Kingdom
Government not to break large service providers ‘ area
Large service providers in the United Kingdom are to strengthen its control over the public sector, although
Government efforts to offer contracts for more suppliers.
The attempts of the Government of the United Kingdom to publicize its spending for more suppliers have so
not now, according to the research group of information security, with small and medium-sized enterprises
suppliers in the United Kingdom and abroad alternatives being neglected.

6. IBM
bags of billions of dollars in it services plans in a matter of days
IBM won business worth $ 3.6 billion, with advertising giant WPP the last ink a billion dollars
agreement.
The seven-year contract worth $ 1.25 billion will see WPP, which last year registered more recipe
$ 17 billion, putting the digital services in a hybrid cloud with IBM’s global management.

7. European
companies satisfied with it infrastructure outsourcing, but the priorities are changing
Although 60% of European companies are satisfied with it
infrastructure service providers, its focus is the change to reduce costs for the services
will help them increase sales and provide a better customer experience.
In a study conducted by Forrester Research, 71% of it infrastructure services buyers cited revenue growth
and improve the customer experience as priorities for promotions, while 66% said cutting costs was a
focus.

8. AstraZeneca
take in-house processing at sea
The opening of a service center in Chennai announced
in February 2014 expelled bold strategy insourcing of AstraZeneca and its focus on a trend
you’re seeing large businesseses invest in global delivery operations.
The Chennai operation will begin with 60 employees and increased to 300 in their first year. He
will be focused on SAP, infrastructure operations, development and maintenance of applications, also
as cloud and mobile.

9. Asia
how outsourcing location and dominates India remains without rival
India is still the best place for businesses to outsource services and is unparalleled in terms of scale
and availability of skills, according to AT Kearney last index, which ranks the business services
locations.
Asian countries dominate management consulting index of top 50 global locations, with
six of the top 10 in the region.

10. YOU
utility company reaches a non-linear growth through Automation
Scandinavian it service company Cygate expanded their business without the need to recruit more
people using the IPsoft automation software.
In 2010, the company, which serves more than 1.000 customers, including some of the largest
companies in the Nordic region, tried 20% sales growth. This meant that the company
necessary to add features or service levels risk of deterioration. But just adding human resources would have
reduced its margins.

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