Articles covering outsourcing topics by analysts such as Gartner and consulting firms like Accenture often stay at such high level that their practical application requires engaging these firms. Once in a while these articles could be very informative and helpful The latest KPMG study is worth taking look at. That study covering outsourcing for technology-related services shows some radical changes and interesting trends in the marketplace, to which both companies and service providers will need to adapt.
2015 study by KPMG covers over 2,100 contracts across 23 countries with an annual contract value of US$12 billion+. It provides insights into service provider performance as well as extensive insight on IT services market trends, and provides predictions on the future state of the IT services market and projected buying patterns. The study highlights the following key findings:
- A shift from cost reduction being the biggest challenge for IT functions to one in which IT services are increasingly viewed as an enabler for improved business service delivery and transformation.
- Greater focus on enabling innovation via IT outsourcing, especially via enabling greater organizational agility and accelerating the pace of investment into technologies such as cloud
- The above being said, cloud adoption remains sluggish, with the majority of clients spending less than 10 percent of their IT spend on cloud. Data location, security or privacy are the biggest barriers to cloud adoption.
- Governance and management of IT services and outsourcing efforts remain a major problem with mixed satisfaction from service integration and management
To access the study materials click here to download the management summary. (The full report is only available to those organizations that have participated in the survey). You can also find an infographic summarizing the key findings from the report by clicking here.