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Description: In 2011, the IT outsourcing industry was marked by smaller deals, leery customers, profit-squeezed IT service providers and a lot of cloud computing talk. Much of that could continue next year, but as our 12 predictions for 2012 indicate, you can expect some new IT outsourcing developments–maybe even a few firsts.


Date: Dec 22, 2011

The IT outsourcing industry in 2011 was largely marked by smaller deals, hesitant customers, profit-squeezed providers and a whole lot of talk—but not as much action—on the cloud computing front.

Much of that could continue through the New Year—the economic uncertainty behind last year’s sourcing trends is unlikely to lift until the latter part of the year. Nonetheless, the next 12 months will bring with them some new IT outsourcing trends and maybe even a few firsts. Following are 12 predictions from forward-looking outsourcing observers.  READ REST OF STORY

Questions for discussion:

  1. What are the two most likely predictions in IT outsourcing for 2012?  Why?

2.  What are the two most unlikely predictions in IT outsourcing for 2012?  Why?

3 Responses to “12 IT Outsourcing Predictions for 2012”

  1. Paige C

    The 2 IT Outsourcing predictions for 2012 that I find highly likely are The IT security takes center stage, and more back sourcing talk than action. I think IT security will take center stage because people are becoming aware of how easily information can be hacked into and now that the internet is so readily accessible, people have pretty much their entire lives on their computer or cellphone for example, and it is important for people to protect themselves from scammers and hackers with malicious incentives. I also think that more back sourcing talk than action is likely to happen because I have seen many articles in the news about North Americans becoming very concerned about losing their jobs to immigrants or outsourcing, with these concerns rising, organizations will try to adjust their production to fit the needs of their customers. However; just like the prediction says, it is very expensive in time and monetary terms to build warehouses and to hire hundreds of people etc. The two predictions I find highly unlikely to happen in 2012 are IT Service Buyers Look Beyond Labor Arbitrage (But Vendors Don’t), and Cloud computing comes down to earth. I think vendors will have enough employees to make sure costs are reduced for their customers, but as well as a team of IT professionals to keep up with the fast evolving IT market in order to stay on par with competitors. I don’t think that the cloud will come down to earth just yet, it is still in its “buzz” period and not many people that I know use the cloud, once the popularity increases and more files and information are stored on clouds I think people will become aware of the importance of privacy when using the cloud.

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