Abstract
This IDC study provides vendors, whether services or technology, with an overview of market feedback on customer buying patterns when it comes to what is labeled as "transformation," and, in particular, transformation as part of outsourcing/managed services engagements. This study, which interviewed both LOB and IT executives on the same set of factors, highlights key market trends around transformation as related to such issues as the optimal sequence of transformation, drivers and challenges as related to transformation, and type of transformation they prefer to pursue in the next couple of years. This study also provides vendors with key steps that they need to consider when looking to offer transformational services as part of outsourcing opportunities.
"Traditional outsourcers looking to offer transformational types of services to customers that want to outsource need to consider the requirements of embedding transformation as part of an outsourced deal, understand the impact of transforming their customers to newer technology models, and look toward transforming their own businesses with the focus on building outsourced businesses using newer service models such as SaaS and cloud computing," said David Tapper, IDC Program VP, Outsourcing, Utility, and Offshore Services. "While there will be considerable opportunities to provide transformational services as part of outsourcing engagements, those players that simultaneously build a long-term strategy to change their own business models to align with the shift to newer utility-based service models will be better positioned for long-term growth."
Table of Contents
- Table of Contents
- IDC Opinion
- In This Study
- Transformation Demand-Side Survey
- Methodology
- Respondents
- Interviews
- Survey Schedule
- Data Analysis
- Respondent Profile
- Company Size
- Figure: Respondents by Company Size
- Industry
- Figure: Respondents by Industry
- Methodology
- Executive Summary
- Transformation Demand-Side Survey
- Situation Overview
- Drivers and Influencers of Transformation
- Figure: Drivers of Transformation
- Figure: Challenges to Transformation
- Figure: Top Influencers in Transforming Business Process
- Figure: Top Influencers in Transforming Technologies
- Figure: Technology with Greatest Impact on Transformation
- Optimal Sequence, Method of Engagement, and Type of Transformation
- Figure: Preferred Method of Engagement
- Figure: Degree of Utilizing Outsourcing as Means of Transformation: Next 12-36 Months
- Figure: Type and Optimal Sequence of Transformation in Next 12-24 Months: LOB Respondents
- Figure: Type and Optimal Sequence of Transformation in Next 12-24 Months: IT Respondents
- Provider Requirements
- Figure: Top Outsourcer Criteria for Transformation
- Figure: Top Objectives in Using an Outsourcer in Transforming Business Process
- Future Outlook
- Changing Sourcing Strategies
- Figure: Changing Enterprise Sourcing Strategies
- Changing Development-Delivery Model
- Figure: Transformation of Development and Delivery: Traditional Model
- Figure: Transformation of Development and Delivery: Reversing Course
- Shift to Host-Based Virtual Services
- Figure: The World of Virtual Service Delivery
- Transformation of the Enterprise
- Figure: Impact of Enterprise Transformation: Shift of Sourcing to New Suppliers with New Models
- Transformation of the Service Industry
- Figure: Market Direction: Cannibalization of Traditional Outsourcing Services Market
- Essential Guidance
- Learn More
- Related Research
- Appendix: Survey Instrument
- Section A: Customer View of Transformation and Road Map of Adoption
- Definition
- Table: Influencers
- Section B: Customer View of Outsourcing as Related to Transformation
- Table: Current Transformation Sequence
- Table: Future Transformation Sequence
- Section C: Industry
- Section A: Customer View of Transformation and Road Map of Adoption
- Synopsis

