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 Three Trends 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.