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2011 European IT Outsourcing Predictions and Expectations

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Judging from the perspective of ITO services buyers and services providers, the following trends and changes are anticipated in 2011

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2011 European IT Outsourcing Predictions and Expectations

  1. 1. 2011 European IT Outsourcing <br />Predictions and Expectations<br />www.softheme.com<br />
  2. 2. Table of Contents<br />Trends and Changes in 2011<br /><ul><li>Services Buyers
  3. 3. Services Providers</li></ul>www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  4. 4. Trends and Changes in 2011<br />Services Buyers<br />Judging from the perspective of ITO services buyers, the following trends and changes are anticipated in 2011:<br /><ul><li>An increased demand for outsourced IT services from the public sector
  5. 5. A shift from mere cost saving to access to qualified and lower-cost IT</li></ul>resources<br /><ul><li>Nearshoring will hit the mainstream
  6. 6. Service integration will help achieve innovation</li></ul>www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  7. 7. Trends and Changes in 2011<br />Services Buyers<br />An increased demand for outsourced IT services from the public sector.<br />In 1Q 2010, public sector contracts stood at over €9 billion and are expected to increase in 2011. <br />In the UK alone, public sector gained a 75% share in the nation’s outsourcing spending<br />It is expected that the demand to explore and utilize outsourcing opportunities in Europe will increase due to recent turmoil in such countries as Ireland and Greece as well as economic uncertainties in other states.<br />www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  8. 8. Trends and Changes in 2011<br />Services Buyers<br />A shift from mere cost saving to access to qualified and lower-cost IT resources.<br />In 2010, Western Europe faced a significant shortage in IT skills and resources. <br />In 2Q 2010, staff skills in C#, SQL, .Net and Java were in short supply, with the number of related jobseekers in decline. <br />www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  9. 9. Trends and Changes in 2011<br />Services Buyers<br />A shift from mere cost saving to access to qualified and lower-cost IT resources.<br />2010 showed a significant increase in IT workforce and skills in Eastern Europe:<br />Growth in the number of IT specialists<br />More than 20% of outsourcing companies admitted their plans to continue outsourcing their IT function in 2011 to get access to better qualified IT resources outside their home countries.<br />www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  10. 10. Trends and Changes in 2011<br />Services Buyers<br />Nearshoring will hit the mainstream.<br />In 2011, more Western European clients will be outsourcing their IT nearshore (to Central and Eastern Europe) or nearshore and within own country. <br />Factors that will be driving companies’ choice of nearshore outsourcing in 2011 are: <br /><ul><li>geographical proximity
  11. 11. strong R&D potential of former USSR nations
  12. 12. strong language skills</li></ul>www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  13. 13. Trends and Changes in 2011<br />Services Buyers<br />Service integration will help achieve innovation.<br />In 2010 and previous years, many companies failed to achieve innovation in their outsourced operations, because they typically thought that transferring an IT<br />project to be completed by the 3d party should enable them to focus on their core competencies. <br />In 2011 more Western European IT leaders are expected to realize the importance of integrating the outsourced project management, orchestration and delivery, thus gaining full control of their sourced projects.<br />www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  14. 14. Trends and Changes in 2011<br />Services Providers<br />Judging from the perspective of ITO services providers, the following trends and changes are anticipated in 2011:<br /><ul><li>An increased focus on SMEs
  15. 15. Innovative outsourcing engagement models will hit the mainstream
  16. 16. No more client-silo approach</li></ul>www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  17. 17. Trends and Changes in 2011<br />Services Providers<br />An increased focus on SMEs.<br />In 2011, an increased demand to adopt outsourced IT services will come from the SME segment and providers should be ready to anticipate smaller and, thus, less profitable deals. <br />www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  18. 18. Trends and Changes in 2011<br />Services Providers<br />Innovative outsourcing engagement models will hit the mainstream.<br />In 2011, Western European companies will be looking for a provider with the capacity to take over the entire product or application development process, and in some cases, help manage the entire business function. <br />www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  19. 19. Trends and Changes in 2011<br />Services Providers<br />No more client-silo approach.<br />As businesses aim to learn more best practices by sharing knowledge with their peers across different industries, IT providers will be challenged to transform their client-silo mindsets and encourage collaboration between clients from various industry domains<br />www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  20. 20. Trends and Changes in 2011<br />To conclude with, in 2011 European ITO will remain a highly demanded practice with some significant focus shifts towards <br />agility<br />processes optimization<br />transparency of transactions and payments<br />innovation<br />cloud<br />www.softheme.com Outsourcing to Softheme™ 2011 European IT Outsourcing: Predictions and Expectations<br />
  21. 21. Thank you!<br />Questions?->info@softheme.com<br />2010 | Softheme Team | Kyiv, Ukraine | Software Outsourcing Solutions<br />www.softheme.com»Outsourcing to Softheme™<br />

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