Recent Trends in IT Globalization
New engagement models such as managed services, pay per use models are transforming the IT globalization arena.
Recent benchmarking studies by Zinnov has shown the maturity of IT global sourcing across functions
- Application Development & Management (ADM)
- Infrastructure Management Services (IMS)
- System Integration (SI)
- Support & Help Desk
- Business IT Strategy
Source: Zinnov 2007, 2008 & 2009 Benchmarking Study
Cost differential between onsite and offshore locations for Infrastructure Managed Services (IMS)
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Zinnov Launches 2010 IT Benchmarking Studies
Zinnov is launching a comprehensive 2010 IT and shared services survey to address the following needs:
- Global Sourcing Maturity: Companies often plan in isolation and there is a need to understand the qualitative and quantitative aspects of global sourcing including offshorability of activities, quantum of activities sourced from remote locations, financial insights from global sourcing etc.
- Process Level benchmarking: The need to understand how peer group companies are performing across various metrics and various IT processes is becoming critically important as companies continue to look for cost savings
- Lack of Disciplined Methodology: Average of Average really does not mean anything to many executives. Many benchmarking studies do not provide the correct granular level information and aggregate too much resulting in poor decision making. We have designed a powerful methodology to solve for this
- Comprehensive Taxonomy: Our taxonomy and quantitative modeling is very powerful as you will get analysis by location, by process, by metrics and by engagement model. A revolutionary approach in benchmarking. Click here to sign up
30 Plus Global Locations Analyzed by Zinnov for tracking talent pool across emerging countries. We have designed a robust quantitative methodology to evaluate the existing and potential talent pool to work in the IT domain
Transformation of ITO : Utility Solutions
“In the past 15 years, Offshoring have evolved from simple T&M models to more risk sharing, SLA based Managed Services models”
Zinnov Globalization Trend Research & Analysis |
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Interesting Graphs from Zinnov 2009 Shared Services Benchmarking Studies
- Propensity to offshore various IT functions in ADM
- Shared Services Globalization Maturity in the Industry
- InEnterprise Support, Level I & Level II support are predominantly offshored
- Evolution of IMS offshoring
- Value of Managed Services
IT Global Sourcing Trends:
Sound bites from the global grounds:
"We all know that offshoring is here to stay, we want to be prudent on the risks and the opportunities. As IT is extremely critical for us, we can’t just jump into the bandwagon"
Source: CIO of a large product company- Silicon Valley, CA
"Days of T&M for IT projects are over, we have transitioned all our ITO engagements into Managed Services contracts"
Source: Discussions from Confluence 2010- Santa Clata, CA
"Our IT budgets are shrinking yet the delivery expectations are increasing, unless we leverage global delivery model, we can’t fulfill the business needs"
Source: Discussions from Confluence 2010- Santa Clara, CA |
