BLOG POST

Tech & Sourcing @ Morgan Lewis

TECHNOLOGY, OUTSOURCING, AND COMMERCIAL TRANSACTIONS
NEWS FOR LAWYERS AND SOURCING PROFESSIONALS

KPMG’s IT Outsourcing Service Provider Performance & Satisfaction Study 2014/15 offers key insight for both service providers and customers as the outsourcing market continues to develop and adapt. The study uncovered that “technology plays an increasingly instrumental role in business” and that outsourcing will shift focus “from cutting costs toward delivering value-adding services and innovations.”

Research findings include the following:

  • Enhancing service delivery and flexibility, rather than cost, was cited as the biggest IT challenge.
  • Cost is still the most common reason for IT outsourcing, but quality improvement and access to skills are not far behind.
  • Rather than centralizing IT services to reduce cost, mature companies are moving toward a global business services model using an efficient enterprisewide delivery platform to drive business value.
  • Cloud technologies are underused—security concerns may be overblown and can be managed by effective governance and careful vendor selection.
  • As IT services become more complex and agile and involve multiple vendors, customers should invest more resources in governance than they have historically.
  • Customers should reevaluate their outsourcing needs and opportunities and question old assumptions and best practices.