Welcome!

@CloudExpo Authors: Dana Gardner, John Esposito, Pat Romanski, Elizabeth White, David Balaban

News Feed Item

ISG Forecasts Top Americas Sourcing, Operational Trends for 2013

Sea change in sourcing dynamics underway, cloud growth to continue

STAMFORD, Conn., Dec. 13, 2012 /PRNewswire/ -- Information Services Group (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company, today identified seven top trends that will define the sourcing and operational agendas of Americas CIOs and their business enterprises in 2013.

"2013 is shaping up to be a year of significant change," said David Whitmore, Vice Chairman, ISG, and President, ISG Americas. "We see a sea change underway in sourcing dynamics, the continued growth of cloud continuing and a changing operational landscape in key verticals. While some of the particular challenges our clients face will vary, a consistent imperative will be to develop and implement strategies that significantly improve efficiency, facilitate managerial oversight and transparency, and enhance competitiveness."

The seven trends ISG identified are based on a survey of the firm's sourcing experts and industry specialists:

Automation will transform the economics of outsourcing. Outsourcing has historically achieved cost efficiencies principally by moving jobs to low-cost labor centers. Today, a new model is emerging that deploys tools, platforms and software that automate tasks and functions previously performed by humans. As a result, the competitive advantage of offshore service providers – skilled resources at low cost – will become less important. Expect to see new players emerge as both buyers and providers create new business models to integrate and manage these capabilities.

HR and e-mail will drive cloud computing growth. In 2013, several big-name global brands will overcome commercial and contracting barriers associated with cloud computing and move their workforce administration, payroll and messaging platforms to multi-tenant SaaS delivery models. As mature and largely commoditized technologies, HR and collaboration are both ideally suited for the SaaS model.  Expect HR organizations to look to SaaS to decrease reliance on corporate IT and provide a more compelling new experience for employees. For IT and procurement organizations, SaaS-based email will reduce costs and licensing overhead.

"Hoteling" of global networks will become more prevalent. As BYOD and mobility requirements continue to drive bandwidth demand in 2013, large organizations will adopt new approaches to manage their global data and telecom networks. Businesses are becoming more conscious of connect-from-anywhere demand from users and are thinking globally about how they buy bandwidth. An emerging "hotel" interconnect model allows an enterprise to tap into a large hosting facility and then provide regional interconnects for best-in-class pricing. Rather than relying on one provider to deliver global services, the hotel model requires enterprises to assume greater ownership of assembling and managing the network, increasing the importance of effective multi-vendor management practices and governance processes.

Risk mitigation will top the agenda for financial services firms. In response to regulatory and compliance pressures, financial services organizations will focus on governance and operational transparency to assess, monitor and mitigate risk. Next year will likely see stricter audits and more regulation of third-party relationships. Regulators will require more evidence of service provider management, as well as evidence of defined governance processes. Many organizations today are lacking – in resources, in data and in connection of data to action.

Insurers will aim high but must overcome legacy barriers. Insurance organizations will aim to centralize and standardize operations across multiple business lines. Rather than having one set of operations for life policies and another for auto, they'll seek rationalization to drive significant efficiency gains. In a similar vein, insurers' sourcing strategy is shifting from staff augmentation to a managed services model. But implementing these initiatives will require overcoming substantial cultural barriers.

Healthcare payers will adapt to a new order. Tier one payers will add to their group portfolios while also increasing their focus on individual policies. As a result, operational dynamics will change, creating demand for new products and for greater granularity in underwriting. And as consumers start buying individual plans, they will demand transparency into costs, service quality and health outcomes. Tier two payers, most notably the regional Blues, must catch up in terms of basic operational efficiency. This will mean more benchmarking, against peers as well as against competitors, as the Blues aim to understand where they have a chance to compete. We will see a move to rationalize myriad administrative systems, implement governance processes, transition from staff augmentation to shared services and manage internal demand for services.

Savvy pharmas will use M&A to drive improvement. The M&A activity that many major pharmaceutical companies are engaging in presents an opportunity to standardize operations and rationalize software portfolios. Because an M&A initiative requires an organization to document the utilization of all software licenses and associated support agreements, the process will encourage some companies to go a step further and deploy a software rationalization initiative. In addition, regulatory requirements will drive an increased focus on data management, tiering and retrieval strategies.

About Information Services Group
Information Services Group (ISG) (NASDAQ: III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries.

For additional information, visit www.isg-one.com.

Follow us on Twitter: https://twitter.com/ISG_News

Follow us on LinkedIn: http://www.linkedin.com/company/information-services-group

SOURCE Information Services Group (ISG)

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
Between the mockups and specs produced by analysts, and resulting applications built by developers, there exists a gulf where projects fail, costs spiral, and applications disappoint. Methodologies like Agile attempt to address this with intensified communication, with partial success but many limitations. In his session at 18th Cloud Expo, Charles Kendrick, CTO & Chief Architect at Isomorphic Software, will present a revolutionary model enabled by new technologies. Learn how business and devel...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, will discuss how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technol...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
New Relic, Inc. has announced a set of new features across the New Relic Software Analytics Cloud that offer IT operations teams increased visibility, and the ability to diagnose and resolve performance problems quickly. The new features further IT operations teams’ ability to leverage data and analytics, as well as drive collaboration and a common, shared understanding between teams. Software teams are under pressure to resolve performance issues quickly and improve availability, as the comple...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, will draw upon their own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He will also discuss the implementation of microservices in data and applicat...
Join IBM June 8 at 18th Cloud Expo at the Javits Center in New York City, NY, and learn how to innovate like a startup and scale for the enterprise. You need to deliver quality applications faster and cheaper, attract and retain customers with an engaging experience across devices, and seamlessly integrate your enterprise systems. And you can't take 12 months to do it.
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, will discuss how research has demonstrated the value of Machine Learning in delivering next generation analytics to im...
This is not a small hotel event. It is also not a big vendor party where politicians and entertainers are more important than real content. This is Cloud Expo, the world's longest-running conference and exhibition focused on Cloud Computing and all that it entails. If you want serious presentations and valuable insight about Cloud Computing for three straight days, then register now for Cloud Expo.
As you respond to increasing requests for new analytics, you need fast and flexible technology in your arsenal so that you can deploy the right workload to the right platform for the need at hand. Do you need self-service and fast time to value? Do you have data and application control and privacy needs, along with strict SLAs to meet? IBM dashDB™ is data warehouse technology powered by in-memory computing and in-database analytics that are designed for fast results, scalability and more.
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
The paradigm has shifted. A Gartner survey shows that 43% of organizations are using or plan to implement the Internet of Things in 2016. However, not just a handful of companies are still using the old-style ad-hoc trial-and-error ways, unaware of the critical barriers, paint points, traps, and hidden roadblocks. How can you become a winner? In his session at @ThingsExpo, Tony Shan will present a methodical approach to guide the holistic adoption and enablement of IoT implementations. This ov...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...