The changing rules in software outsourcing

The Changing Rules in Software Outsourcing

Swami NathanVP – Group Strategy

V2Solutions 5-Jan-2014

Outline• Exciting Times..!!• From the Past• Back to Basics• Trends & Insights

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Let’s check the predictions…Gartner hype-cycle for Cloud Computing

Alignment of Cloud theory with IT Leaders

Cloud perception has remained the same last few years; fueled by ‘Expectations’ quadrant;

but still maintaining the ‘Trust Deficit’5-Jan-2014

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Made in USA

Insourcing

• GM is announcing hiring of 10,000 in IT over 2yr to reduce outsourcing dependency

• Yahoo may go the same route & with global team consolidation in US

• Vendor governance moves from Art to Science More investment in Managed Governance & Automated ToolsSource: Gartner 2013

People based Scaling – Not fun anymore..!!

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Client Inc.1234 Fake Address Ave.Los Angeles, CA 90210Dear Vendor,We are open to hear any good news from you..!! It is just

that we need help in understanding what is good for us.

Back to basics..

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Traditional Outsourcing Areas• Application Dev / Maintenance / Hosting• D/B Admin• Datacenter Ops• Desktop support• Disaster recovery, IT security, Network Ops• Web & eComm systems

New Age Impact Areas• Cloud• Mobile• Social• Analytics• Data / Content

Future• Wearables• Environment Integrated• Content in Context• Micro-Monetization

123

Diversified & DistributedEnterprise Process Driven

Corporate

Converging & ConsolidatingSmart & Collaborative Apps Driven

Community

Personal AlignedRetail model in Outsourcing

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Corporates Enterprise s/w People driven ContentOutsourcing

Crowd Sourcing DEV Community Smart Process Apps Tool driven Context

• Global reach• Localized info.• Quicker

turnaround• Creates more

Opportunities

• Developer Community is born

• Smaller companies or Freelance Developers eating in to Outsourcing

• Major shift in where Apps reside

• Less on Servers / Desktops

• More on Cloud / Mobiles

• Enterprise Workflow Apps

• Large Process teams are aligned thro Tools

• Data driven Decision making

• Metrics validated Delivery

• Automation in many areas

• Content overload reduced efficiency / application of knowledge

• Need Contextual info / data Insights to edge out competition

From

To

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SupplyGap

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Just-Sourcing

Value.. still the Mantra

Map Business Needs in Contract for Outcome

Be Insights Driven

Impact Sourcing Service Providers

Be ParanoidOutsourcing

Adjustment - 80-20 rule reversing

Innovation.. More than Ever

Grassroot level, Productized Services

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Buyer profile: Know All & No Clue

Deliver quicker RoI

EAAS(Everything-As-A-Service – mostly Virtual - Noshoring)

Agile Processes(Large Process teams replaced with Smart

Processes)

Go Vertical(Business aligned, cutting

competition)

COTS(Here to stay & will

replace many Services)

Co-Creation(Joint partnerships, Risk-Reward, Outcome based)

Self Service Platforms(Tools to perform each Job / Phase of work / Function)

Future Trends

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Thank You

Swami NathanVP – Group Strategy

V2Solutions – www.v2solutions.com Twitter: malcobev

Google+: google.com/+SwamiNathan

5-Jan-2014