TIF Managed Services in the
Public and Private Sectors 2005
Oisín Byrne
Managing Director
Research, Connect, Answer™

IT Spend by Industry Vertical
Sem i-State €266 Financial Services
€502
Services €141
Retail & Wholesale
€241
Manaufacturing
Healthcare €100
€424
Com m unications
€158
Governm ent €383
Research, Connect, Answer™

IT Service Spend in 2005
2004 2005
60
SW Maint
55
85
HW Maint
81
161
Managed Services
101
239
Outsourcing
200
200
AD/SI
220
170
Consulting/Advisory
180
0 50 100 150 200 250 300
Spend in € millions
Research, Connect, Answer™

Right Sourcing: Many offerings
D/R
BPO
Printing
AD
Outsourcing
Payment
Processing
Shared Services Hosting
Claims
Processing
Call Center
Outsourcing IT Outsourcing
Payroll Help Desks
Processing
Research, Connect, Answer™

Market Drivers
Resistance to Outsourcing
•
People Issues
•
Scale of Operation
•
Market Confusion
•
Over focus on Costs
•
Length of Deals
•
Rigid SLAs based on IT not Business
•
Market needs more creative offerings
•
Research, Connect, Answer™

Drivers in Public Sector
• De-Centralisation
– Separate People, Process and Systems
• Shared Services
– Cluster of Departments
• Right Sourcing
– Mix or blend of offerings
• 2006 to see lots of activity
– Small Managed Service Deals
– Large Managed Service Tenders
Research, Connect, Answer™

Drivers in Private Sector
• Outsourcing Backlash
• Lack of understanding of Big Picture
• Progressive or Selective outsourcing
– AD Outsourcing
– APP Outsourcing
– Call Centre Outsourcing
– Desktop Outsourcing
– Network Outsourcing
– Security Outsourcing
– Website Hosting
Research, Connect, Answer™

oisin.byrne@ireach.ie
Close and Questions
Research, Connect, Answer™