Award winning benchmarking, sourcing and transformation advisory firm, Alsbridge,
Inc., today released a new report “Three
Trends Affecting Your Sourcing Strategy Now.” As the title suggests, this
whitepaper reveals the three trends that are beginning to affect sourcing
strategies – insourcing, location and new technologies. Understanding these
emerging trends will help organizations take the necessary steps to improve the
quality of their sourcing strategy.
Alsbridge
Chairman and CEO, Ben Trowbridge, says “By better understanding the movement of
some types of services back in-house, the increasing array of suitable delivery
locations, and the impact of new technologies, you can ensure your sourcing
strategy is as comprehensive and positions you to take advantage of the
benefits these trends offer.”
Contrary to conventional wisdom, full-scale insourcing is a
rare event. Insourcing
is a difficult task, and the transition costs and risks can be
substantial. It requires building a new
team and acquiring or developing delivery capacity from the ground up. Additionally, providers have made substantial
investments in process maturity, training, and productivity tools which can be
difficult to replicate internally across a broad scope of services.
India has long been the dominant force in offshoring of
work. However, other geographies will gain additional market share as India’s
labor cost advantage continues to erode due to inflation and other countries
grow their skills and language capabilities.
US domestic/rural sourcing will also grow as the labor cost gap with
India continues to shrink.
Changes in technology and how it is leveraged are driving
changes to the IT environment. While these new technologies are promising,
clients are still struggling to manage internal expectations and determine how
best to implement these technologies in ways that integrate with and support
their business objectives, while managing business risks and constraints. Providers are feverishly working to enhance
their skills and determine how to use these technologies to differentiate their
offerings in the marketplace.
These three trends will influence the scope, cost,
transition and organizational change management aspects of a sourcing strategy.
For further details on these trends and how you can leverage them to your
benefit, download the complete report ThreeTrends Affecting Your Sourcing Strategy Now.
About
Alsbridge Inc.
Alsbridge provides world class sourcing advisory and benchmarking services for
the CIO, CFO and CPO. We’ve helped
hundreds of companies reduce costs and get more value from their vendors. Our experienced consultants leverage
proprietary tools and information databases to identify and engage the optimal
vendors for your situation, negotiate best practice terms at fair market
prices, and improve the way you work with your vendors. Alsbridge clients utilize the most cost
effective and value added sources globally for IT infrastructure services,
hardware and maintenance, network services, software and maintenance, application
support and development, business processes and cloud services. Alsbridge was
ranked the #1 outsourcing advisor in the world by the International Association
of Outsourcing Professionals (IAOP) based on the value delivered to
clients. This commitment to delivering
value to our clients has made Alsbridge a distinguished member of the 2010 Inc.
500 fastest growing privately held companies in America.
