Media releases are provided as is by companies and have not been edited or checked for accuracy. Any queries should be directed to the company itself.

Selective Outsourcing - Potential for Reward and Potential for Risk, Says IDC

  • 16 March, 2005 10:58

<p>NORTH SYDNEY, 16th March, 2005 –IDC's recent research into selective outsourcing has found that organisations cite a lack of flexibility and transparency in pricing, along with declining service levels as the biggest disadvantages of Whole-of-IT Outsourcing.</p>
<p>In the recently released report titled "The Outsourcing Dilemma - A Look at Selective Outsourcing in Australia," IDC has researched the sentiments of organisations that have changed their sourcing strategies and moved away from Whole-of-IT Outsourcing towards a Selective Outsourcing model. Case studies have been presented in the report, which highlight the key drivers behind the decision.</p>
<p>"Selective Outsourcing is being perceived as the new vehicle of change which would help organisations drive their costs down and achieve better efficiencies. The large-scale, single-vendor arrangements have been characterised by unrealised cost savings, ill-defined contractual terms, ineffective service levels, and vendor inflexibility in response to changing business requirements.</p>
<p>"In response to the problems, the 'selective outsourcing' model has emerged as an attractive alternative to the single-vendor approach. This sourcing strategy will however bring new challenges in terms of vendor management and governance, which would become more complex due to multiple vendors involved," said Aprajita Sharma, IDC Australia's Senior Outsourcing and BPO Analyst.</p>
<p>"It may also lead to duplicated efforts, and problems might go unresolved if they don't clearly fall within the scope of responsibility of any individual vendor. Thus defining a robust governance framework with a clear responsibility matrix will be extremely critical to the success of these outsourcing relationships," added Ms Sharma.</p>
<p>IDC's report also presents suggestions to vendors on what would be required in order to gain a competitive edge and a winning formula for such contracts.</p>
<p>Key highlights from the report are:</p>
<p>* This new outsourcing trend will make the competitive landscape more crowded, opening doors for small and mid-sized service providers who have better expertise in their own niche areas.</p>
<p>* Such contracts can be looked upon as sources of lucrative opportunities by service providers who offer consultancy services in defining sourcing strategies. They can add value to their offerings by also provisioning post-contract vendor management services.</p>
<p>To purchase this study, please call the IDC sales team on (61 2) 9925-2226 or email Gary Clarke on</p>
<p>For press enquiries please contact:
Aprajita Sharma
Market Analyst, Outsourcing and BPO
Phone: 61 2 9925 2257</p>
<p>Click here to view the press release online:</p>
<p>Click here to subscribe to IDC press releases and newsletters online:</p>

Most Popular



Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Join the newsletter!

Error: Please check your email address.

Latest Articles


PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?