Click here to close now.

Welcome!

Cloud Expo Authors: Carmen Gonzalez, Elizabeth White, Pat Romanski, Adrian Bridgwater, William Schmarzo

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
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises a...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Over the years, a variety of methodologies have emerged in order to overcome the challenges related to project constraints. The successful use of each methodology seems highly context-dependent. However, communication seems to be the common denominator of the many challenges that project management methodologies intend to resolve. In this respect, Information and Communication Technologies (ICTs) can be viewed as powerful tools for managing projects. Few research papers have focused on the way...
As the world moves from DevOps to NoOps, application deployment to the cloud ought to become a lot simpler. However, applications have been architected with a much tighter coupling than it needs to be which makes deployment in different environments and migration between them harder. The microservices architecture, which is the basis of many new age distributed systems such as OpenStack, Netflix and so on is at the heart of CloudFoundry – a complete developer-oriented Platform as a Service (PaaS...
As cloud gives an opportunity to businesses to buy services externally – how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, provided answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He also discussed Intercloud and Cisco’s investment on it.
There is no question that the cloud is where businesses want to host data. Until recently hypervisor virtualization was the most widely used method in cloud computing. Recently virtual containers have been gaining in popularity, and for good reason. In the debate between virtual machines and containers, the latter have been seen as the new kid on the block – and like other emerging technology have had some initial shortcomings. However, the container space has evolved drastically since coming on...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover ...
Enterprises are fast realizing the importance of integrating SaaS/Cloud applications, API and on-premises data and processes, to unleash hidden value. This webinar explores how managers can use a Microservice-centric approach to aggressively tackle the unexpected new integration challenges posed by proliferation of cloud, mobile, social and big data projects. Industry analyst and SOA expert Jason Bloomberg will strip away the hype from microservices, and clearly identify their advantages and d...
The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential. The DevOps Summit at Cloud Expo – to be held June 3-5, 2015, at the Javits Center in New York City – will expand the DevOps community, enable a wide...
In her General Session at 15th Cloud Expo, Anne Plese, Senior Consultant, Cloud Product Marketing, at Verizon Enterprise, focused on finding the right mix of renting vs. buying Oracle capacity to scale to meet business demands, and offer validated Oracle database TCO models for Oracle development and testing environments. Anne Plese is a marketing and technology enthusiast/realist with over 19+ years in high tech. At Verizon Enterprise, she focuses on driving growth for the Verizon Cloud platfo...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
How does one bridge the gap between traditional enterprise storage infrastructures and the private, hybrid, and public cloud? In his session at 15th Cloud Expo, Dan Pollack, Chief Architect of Storage Operations at AOL Inc., examed the workload differences and required changes to reuse existing knowledge and components when building and using a cloud infrastructure. He also looked into the operational considerations, tool requirements, and behavioral changes required for private cloud storage s...
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
Cloud Expo, Inc. has announced today that Andi Mann returns to DevOps Summit 2015 as Conference Chair. The 4th International DevOps Summit will take place on June 9-11, 2015, at the Javits Center in New York City. "DevOps is set to be one of the most profound disruptions to hit IT in decades," said Andi Mann. "It is a natural extension of cloud computing, and I have seen both firsthand and in independent research the fantastic results DevOps delivers. So I am excited to help the great team at ...
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at DevOps Summit, Alex Gorbachev, President of Intelligent Systems Services Inc., will share foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN st...
Gartner predicts that the bulk of new IT spending by 2016 will be for cloud platforms and applications and that nearly half of large enterprises will have cloud deployments by the end of 2017. The benefits of the cloud may be clear for applications that can tolerate brief periods of downtime, but for critical applications like SQL Server, Oracle and SAP, companies need a strategy for HA and DR protection. While traditional SAN-based clusters are not possible in these environments, SANless cluste...
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
Hardware will never be more valuable than on the day it hits your loading dock. Each day new servers are not deployed to production the business is losing money. While Moore's Law is typically cited to explain the exponential density growth of chips, a critical consequence of this is rapid depreciation of servers. The hardware for clustered systems (e.g., Hadoop, OpenStack) tends to be significant capital expenses. In his session at Big Data Expo, Mason Katz, CTO and co-founder of StackIQ, disc...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enter...
In their general session at 16th Cloud Expo, Michael Piccininni, Global Account Manager – Cloud SP at EMC Corporation, and Mike Dietze, Regional Director at Windstream Hosted Solutions, will review next generation cloud services, including the Windstream-EMC Tier Storage solutions, and discuss how to increase efficiencies, improve service delivery and enhance corporate cloud solution development. Speaker Bios Michael Piccininni is Global Account Manager – Cloud SP at EMC Corporation. He has b...