Welcome!

Artificial Intelligence Authors: Elizabeth White, Pat Romanski, Dana Gardner, Carmen Gonzalez, PagerDuty Blog

News Feed Item

ISG Forecasts Top Americas Sourcing, Operational Trends for 2013

Sea change in sourcing dynamics underway, cloud growth to continue

STAMFORD, Conn., Dec. 13, 2012 /PRNewswire/ -- Information Services Group (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company, today identified seven top trends that will define the sourcing and operational agendas of Americas CIOs and their business enterprises in 2013.

"2013 is shaping up to be a year of significant change," said David Whitmore, Vice Chairman, ISG, and President, ISG Americas. "We see a sea change underway in sourcing dynamics, the continued growth of cloud continuing and a changing operational landscape in key verticals. While some of the particular challenges our clients face will vary, a consistent imperative will be to develop and implement strategies that significantly improve efficiency, facilitate managerial oversight and transparency, and enhance competitiveness."

The seven trends ISG identified are based on a survey of the firm's sourcing experts and industry specialists:

Automation will transform the economics of outsourcing. Outsourcing has historically achieved cost efficiencies principally by moving jobs to low-cost labor centers. Today, a new model is emerging that deploys tools, platforms and software that automate tasks and functions previously performed by humans. As a result, the competitive advantage of offshore service providers – skilled resources at low cost – will become less important. Expect to see new players emerge as both buyers and providers create new business models to integrate and manage these capabilities.

HR and e-mail will drive cloud computing growth. In 2013, several big-name global brands will overcome commercial and contracting barriers associated with cloud computing and move their workforce administration, payroll and messaging platforms to multi-tenant SaaS delivery models. As mature and largely commoditized technologies, HR and collaboration are both ideally suited for the SaaS model.  Expect HR organizations to look to SaaS to decrease reliance on corporate IT and provide a more compelling new experience for employees. For IT and procurement organizations, SaaS-based email will reduce costs and licensing overhead.

"Hoteling" of global networks will become more prevalent. As BYOD and mobility requirements continue to drive bandwidth demand in 2013, large organizations will adopt new approaches to manage their global data and telecom networks. Businesses are becoming more conscious of connect-from-anywhere demand from users and are thinking globally about how they buy bandwidth. An emerging "hotel" interconnect model allows an enterprise to tap into a large hosting facility and then provide regional interconnects for best-in-class pricing. Rather than relying on one provider to deliver global services, the hotel model requires enterprises to assume greater ownership of assembling and managing the network, increasing the importance of effective multi-vendor management practices and governance processes.

Risk mitigation will top the agenda for financial services firms. In response to regulatory and compliance pressures, financial services organizations will focus on governance and operational transparency to assess, monitor and mitigate risk. Next year will likely see stricter audits and more regulation of third-party relationships. Regulators will require more evidence of service provider management, as well as evidence of defined governance processes. Many organizations today are lacking – in resources, in data and in connection of data to action.

Insurers will aim high but must overcome legacy barriers. Insurance organizations will aim to centralize and standardize operations across multiple business lines. Rather than having one set of operations for life policies and another for auto, they'll seek rationalization to drive significant efficiency gains. In a similar vein, insurers' sourcing strategy is shifting from staff augmentation to a managed services model. But implementing these initiatives will require overcoming substantial cultural barriers.

Healthcare payers will adapt to a new order. Tier one payers will add to their group portfolios while also increasing their focus on individual policies. As a result, operational dynamics will change, creating demand for new products and for greater granularity in underwriting. And as consumers start buying individual plans, they will demand transparency into costs, service quality and health outcomes. Tier two payers, most notably the regional Blues, must catch up in terms of basic operational efficiency. This will mean more benchmarking, against peers as well as against competitors, as the Blues aim to understand where they have a chance to compete. We will see a move to rationalize myriad administrative systems, implement governance processes, transition from staff augmentation to shared services and manage internal demand for services.

Savvy pharmas will use M&A to drive improvement. The M&A activity that many major pharmaceutical companies are engaging in presents an opportunity to standardize operations and rationalize software portfolios. Because an M&A initiative requires an organization to document the utilization of all software licenses and associated support agreements, the process will encourage some companies to go a step further and deploy a software rationalization initiative. In addition, regulatory requirements will drive an increased focus on data management, tiering and retrieval strategies.

About Information Services Group
Information Services Group (ISG) (NASDAQ: III) is a leading technology insights, market intelligence and advisory services company, serving more than 500 clients around the world to help them achieve operational excellence. ISG supports private and public sector organizations to transform and optimize their operational environments through research, benchmarking, consulting and managed services, with a focus on information technology, business process transformation, program management services and enterprise resource planning. Clients look to ISG for unique insights and innovative solutions for leveraging technology, the deepest data source in the industry, and more than five decades of experience of global leadership in information and advisory services. Based in Stamford, Conn., the company has more than 800 employees and operates in 21 countries.

For additional information, visit www.isg-one.com.

Follow us on Twitter: https://twitter.com/ISG_News

Follow us on LinkedIn: http://www.linkedin.com/company/information-services-group

SOURCE Information Services Group (ISG)

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
"Tintri was started in 2008 with the express purpose of building a storage appliance that is ideal for virtualized environments. We support a lot of different hypervisor platforms from VMware to OpenStack to Hyper-V," explained Dan Florea, Director of Product Management at Tintri, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Big Data, cloud, analytics, contextual information, wearable tech, sensors, mobility, and WebRTC: together, these advances have created a perfect storm of technologies that are disrupting and transforming classic communications models and ecosystems. In his session at @ThingsExpo, Erik Perotti, Senior Manager of New Ventures on Plantronics’ Innovation team, provided an overview of this technological shift, including associated business and consumer communications impacts, and opportunities it m...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus o...
Big Data engines are powering a lot of service businesses right now. Data is collected from users from wearable technologies, web behaviors, purchase behavior as well as several arbitrary data points we’d never think of. The demand for faster and bigger engines to crunch and serve up the data to services is growing exponentially. You see a LOT of correlation between “Cloud” and “Big Data” but on Big Data and “Hybrid,” where hybrid hosting is the sanest approach to the Big Data Infrastructure pro...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists peeled away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud enviro...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
"LinearHub provides smart video conferencing, which is the Roundee service, and we archive all the video conferences and we also provide the transcript," stated Sunghyuk Kim, CEO of LinearHub, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
Discover top technologies and tools all under one roof at April 24–28, 2017, at the Westin San Diego in San Diego, CA. Explore the Mobile Dev + Test and IoT Dev + Test Expo and enjoy all of these unique opportunities: The latest solutions, technologies, and tools in mobile or IoT software development and testing. Meet one-on-one with representatives from some of today's most innovative organizations
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.