Jan 102011
  1. Offshoring passes the early adopter stage – the early adoption bugs (customer care, black & white view of specifications, etc) have been largely worked out now, particularly in India.  Customers have gotten better at specifications and remote management – moving away from the “do what I meant, not what I specified” approach to a more professional approach.  Indian firm are better at client management, with most having onshore support cells.  Even with the labor arbitrage decreasing, more value is being added.  This is the year offshoring will no longer be a novelty, but a mandatory aspect of the business case for delivering IT.  Although, many organizations will continue to use a politically acceptable onshore brand that has offshore operations, rather than offshore direct.
  2. Cloud backlash – speaking of the adoption curve, the current “edition” of cloud is still in the early innovation stage.  Early movers this year will experience enough problems (not just security issues, but pricing and capacity issues) to warrant media attention.  But like offshoring, buyers and sellers will rapidly mature.  Nonetheless, more backlash than honeymoon reports are likely this year (car crashes are much more interesting to read about than a safe journey, and we’ll have few).

[Editor’s Note: This post is part of the annual “Cutter Predicts …” series, compiled at the Cutter Consortium website.]


  One Response to “Sourcing Process Improved, Cloud Backlash Inevitable in 2011”

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