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IT outsourcing year in review, rating our 2011 predictions

Stephanie Overby | Dec. 15, 2011
We revisit our IT outsourcing predictions for 2011 to determine which one were solid hits, which were foul tips, and which were swings and misses

Business users circumvent IT to make their own cloud computing deals, putting IT at risk.

Sure, business leaders were inking cloud services deals throughout the year, but IT leaders also got wise to so-called rogue IT deals. "IT departments are generally aware of all major technology-related activity in their company and are increasingly creating governance models to circumvent one-off cloud deals within the business" says Pace Harmon's Rutchik. "And the business is getting better as seeing IT's value, especially when it comes to vetting the offering, implementing and integrating them, and then managing them," KPMG's LePeak adds.

Providers embrace automation to protect margins, and sell such tools to clients.

It's happening ... very slowly. "They need to continue to separate the linearity between revenue and staff growth," says LePeak, "But it's easier said than done, especially for more complex work."

Clients become open to changing internal processes and accepting standard services rather than insisting on customization.

Just as it was with legacy service providers and cloud computing (and with politicians and protectionism) so it went with IT outsourcing customers and the end of customization requirements-a lot of talk, very little action. "While many companies aspire to accept standardization, the majority of them aren't able to hold to this position when working through business requirements-resulting in mostly customized options, even when they claim they have implemented 'vanilla' processes," says Pace Harmon's Rutchik. "Increased cloud usage will force companies to accept more standardized processes, but this issue remains a large barrier to more ubiquitous adoption."



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