Friday, February 5, 2010

What next? - IT outsourcing industry.

We have seen some interesting differentiators used in winning outsourcing deals in the last decade:

Technology based
1. Communication/Connectivity technologies
2. Internet technologies
3. Emerging technologies????

Event based
1. Y2K
2. Dot.Com

People-based
1. # of graduates (engineers)
2. Talent pool

Business/Economic based
1. Manufacturing -> Services

Quality based
1. Quality certifications leading to claims on Industrialized/factory model for delivery

Cost based
1. Labor arbitrages
2. Factor costs based on countries

Risk based
1. Shift and degree of accountability and ownership changes

What is the next dominating set of factors that could (re)shape the IT outsourcing industry?
- Politics (Regulation, taxation of outsourcing industry, and other trade impediments)
- Economics (Inflation, Exchange rates,....)
- Social structures (Free agents as opposed to employees of organization, ???)
-????