Trends Report

The Applications Outsourcing Market Hits The Crossroads

The New Foundations For Innovation In A Maturing Industry

January 17th, 2013
Bill Martorelli, Principal Analyst
Bill Martorelli Principal Analyst
With contributors:
Christopher Andrews , Fraser Tibbetts

Summary

As more IT organizations operate under the dueling mandates of delivering cost savings and innovation, suppliers of applications outsourcing services are getting ready for the next phase of their growth. Today, the financial results of applications outsourcing suppliers are mixed, and we see growing concerns from suppliers about the source of their future applications outsourcing revenue. As this large marketplace matures, the fundamentals of supplier success are changing dramatically. Clients need greater support for emerging technologies like social, mobile, analytics, and cloud, along with broader support for effective customer engagement and innovation. Without effective support from trusted suppliers, customers will simply outgrow their outsourcing partners or at least limit them to the same old work in a marketplace that is increasingly competitive and commoditized. This report highlights the new sources of value in the applications services marketplace.

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