Shifting Customer Expectations Will Affect Adoption of Outsourced Cloud Service Delivery Models, According to IDC

FRAMINGHAM, MA – October 8, 2010 – Recently published demand-side research by International Data Corporation (IDC) reveals that the move toward outsourced cloud services will dramatically change the requirements that outsourcers and service providers will need to meet to align with the performance and relationship expectations of customers.

The study, U.S. Customers Give Outsourcers a Thumbs Up in Performance, But Expectations Are on the Rise with the Move Toward Outsourced Cloud Services (Doc #222817), indicates access to new delivery models (e.g., cloud, software as a service [SaaS]) is becoming very important. This increased need to use these new models is going to significantly elevate customer expectations regarding the performance of their providers and subsequently change their relationship with providers. Changing customer expectations will require that providers, particularly "traditional" outsourcers such as – IBM, HP, CSC, Accenture, Wipro, TCS, Infosys, Capgemini, and Fujitsu – radically alter their current outsourcing business models.

"Perhaps the greatest lesson of the Great Recession is the need for companies to be much more adaptable to changes in the market," said David Tapper, vice president, Outsourcing and Offshore Services Market research. "This fundamental need is a major force driving considerable shifts in the outsourcing industry – shifts that not only involve provisioning more targeted and innovative solutions – but also involve the transformation of the outsourcing industry from a labor-centric model of service delivery to more asset-based services involving cloud-based outsourcing."

IDC believes that players looking to compete successfully in the market for outsourced cloud services will need to develop robust road maps of how customers are looking to adopt these utility-based services that cut across entire organization requirements. As part of succeeding, many outsourcers and providers will need to make radical adjustments to their delivery capabilities, partnership ecosystems, business models, and service offerings. They will also need to extend their view of who they are and who they will be competing with within and beyond the traditional market of IT and business process services.

To learn more about the latest developments, best practices, and emerging trends in the Outsourcing market, join the discussions on the IDC Outsourcing Services Strategies Blog. This blog serves as a cross-industry interactive dialogue to share valuable information and ideas on the evolving world of outsourcing (and managed services) across the full range of IT and business processes with a focus on customer outsourcing strategies; best practices; emerging trends in customer adoption of newer outsourcing models; key customer requirements; deal making activity; emerging market trends; and strategies of service providers and outsourcers. IDC analysts contributing to the blog include:

Mette Ahorlu

* – Western European Infrastructure Outsourcing ServicesMukesh Dialani

* – Worldwide BPO ServicesDouglas Hayward

*  – European BPO ServicesMarianne Kolding

*  – Western European Outsourcing ServicesLionel Lamy

*  – Western European Infrastructure Outsourcing ServicesStephen Loynd

*  – Contact Center ServicesAlexander Motsenigos

*  – Worldwide Deal MakingMelanie Posey

*  – Hosting Infrastructure ServicesLisa Rowan

*  – HR BPO ServicesSebastien Ruest

*  – Canada Outsourcing ServicesMark Schrutt

*  – Canada Outsourcing ServicesRona Shuchat

*  – Application Outsourcing ServicesDavid Tapper

* – Worldwide Outsourcing ServicesJennifer Thomson

*  – Western European Application Outsourcing ServicesNigel Wallis

*  – Canada Outsourcing Services

The IDC Outsourcing Services Strategies Blog is part of the IDC Insights Community, the leading global, interactive, online community for business and IT professionals to network, share, and engage around technology issues within the context of their business. Visit the IDC Insights Community at http://idc-insights-community.com.

About IDC

International Data Corporation (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 to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 46 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 www.idc.com.

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