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IT to BT? Trends in BPO and ITO ... Posted: Aug 23, 2006 Cem Basman, Business Development Manager, exempTec GmbH |
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Certainly it is about business - and technology is a means to business enabling.
Let's have a look at the big picture: There is a clear trend since a while in the industry of service providers. Particularly the "Big Five" in the market (Accenture, CSC, EDS, HP and IBM) are moving towards the BPO (business) section of the market where the profits are greener and the fame sweeter. At the same time these companies are leaving the lower segments of the markets like the heavy technology ITO business (administration, on-site support, bridging the last mile). They are selling large chunks of their former core business to the second tier of ITO specialists. Or are dislocating remote ITO business to offshores. The Outsourcers are outsourcing themselves. Btw, this forms a global ITO market for low-end ITO services which is like a horizontal plattform to these "Big Five" and their epigones. Quite interesting, I believe. So the Big Five are uplifting to "business technology" but leave the playing field of "information technology" to new and younger global players. This is even true for established regional providers like T-Systems and Siemens who are on the way to get rid off their ITO business ... In an additional parallel movement to this you can see that big offshore nations like India and later on China are attacking massively the lucrative markets in the US and Europe. So IMHO the "Big Five" will get into a dilemma in the next years. In this sense, your tagline "IT to BT" reflects clearly only the perspective of the classic players. But this is only one side of the coin. The game is not over yet. It's just starting. I believe, 2007 will be a complete new market. PS: Additionally to my job I'm observing the market and collecting IT Outsourcing news here: hhtp://basman.wordpress.com/
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