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Take a sneak peek into what’s on the mind of the outsourcing customer

  • 13 March, 2008 10:52

<p>An IDC study has revealed that companies are contracting with renegotiation in mind by creating leverage through strategies such as ‘price benchmarking’, ‘claw-back’ and ‘blue-sky’ clauses.</p>
<p>IDC’s Research Manager for Outsourcing and BPO, Aprajita Sharma said, “This finding is primarily driven by the need for flexibility to redefine the contract and minimise the risk. However, customers need to bear in mind that short term selective outsourcing contracts with blue-sky clauses may provide flexibility within the scope of services, but will not be very price competitive when compared to traditional outsourcing contracts."</p>
<p>"Despite the prevalence of this multi-sourcing trend, the traditional outsourcing suppliers like IBM, EDS ,CSC ended up signing longer term highly bundled multi-tower contracts in 2007.</p>
<p>“IBM managed a sweeping victory over its competitors when it came to ranking customer perception of being a leading outsourcing player. IBM has reinforced this with some high profile strategic deals signed with National Australia Bank, Commonwealth Bank and others within the Government segment," she added.</p>
<p>The report also found that,</p>
<p>· Security issues with revealing internal processes have become bigger issues with organisations in 2007 compared to the previous year</p>
<p>· Respondents have placed "solid communication" as the highest importance within an outsourcing relationship</p>
<p>· Overall, the results indicate a high level of activity within the applications maintenance/management and development space in large organisations.</p>
<p>The report, titled In The Mind Of The Outsourcing Customer: IDC's Annual Outsourcing Survey, 2007 researches the user preferences and needs for IT outsourcing services and the expectations of organisations looking at procuring these services in the near future. The report also highlights trends across various verticals which are proving to be a catalyst in boosting the outsourcing spend in the near future.</p>
<p>To purchase IDC research, please contact Gary Clarke, IDC Associate VP of Sales via email or call 02 9925 2226.</p>
<p>For more information please contact Sally Taylor-Phillips, Marketing Communications Manager at IDC on +61 2 9925 2234 or e-mail</p>
<p>On IDC’s website, this media release relates to document(s):, document #AU221209Q, In The Mind Of The Outsourcing Customer : IDC's Annual Outsourcing Survey, 2007.</p>
<p>About IDC.
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 43 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting or</p>

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