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Saturday, May 19, 2012 in Manila.
News Reports & Surveys... (December 2, 2005 - GlobalSourcingNow) - According to a joint study by Techtel and Fresh Perspectives, existing IT outsourcing contracts worth USD 100 billion are expected to end in the next three years. The study, based on a survey of 600 enterprise IT buyers and 18 IT outsourcing services providers, claims that only 38 percent of buyers are expected to remain with their chief outsourcing provider in the next three years. The study cites 'Paradox of Excellence' as the primary explanation for the response. The phenomenon arises when the high returns due to a service are taken for granted and is revisited only in case of disruptions in that service. The same is also expected to cause price pressure, commoditization, high account turnover, declining brand equity and lower profitability. The study found 9 percent of the respondents to be confident about changing their supplier with about 6 percent likely to make the change, if their current supplier does not improve its services. Almost, 40 percent of the buyers were uncertain about their relationship with their existing provider with only 19 percent being completely satisfied with their current provider. Lock-in periods were pointed out as the single most important factor refraining buyers from changing service providers. The study also found that the largest buyers, with more than 10,000 employees and sizable market segment, are usually the least satisfied with the companies 41 percent more likely to be dissatisfied and 52 percent more likely to switch vendors. (Comment from O2P: The gist of this article is that there is a continuing great opportunity in the area of IT outsourcng. We know that already. FLY HIGH 2010 addresses issues of growth of the software industry. This sector is very under-served by Filipino firms. How many are out there with more than 100 technical/professional staff, that have the ability to compete on this playing field? Very few!!). |
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