More Outsourcing Innovation Consternation

Some numbers from Forrester Research further illustrate the gap between expectation and reality when it comes to the level of innovation brought to bear by IT services providers.

Buyers in the outsourcing market, which Forrester estimates is topping out at $120 billion a year, were more disappointed in the innovation brought to the table by their provider than nearly anything else:

• 15 percent were dissatisfied with their provider’s performance against SLAs
• 23 percent were dissatisfied with their provider’s ability to handle contractual aspects of the deal
• 30 percent were dissatisfied with their provider’s collaboration and communication
• 31 percent were dissatisfied with their provider’s business savvy and value
• 37 percent were dissatisfied with their provider’s cost
• 37 percent were dissatisfied with their provider’s ability to manage change
• 42 percent were dissatisfied with the innovation brought by their provider

Dr. Paul Roehrig, a senior analyst with Forrester, called the disappointment in provider’s ability to manage change “the most ringing indictment of the outsourcing business as a whole. What is outsourcing if it’s not managing business and technology change?” But the innovation number really stood out for me.

Roehrig used the numbers as backdrop for a client teleconference on how test the health of outsourcing deals. For more on that, see How to Measure Real Outsourcing Success (Hint: It’s Not the SLAs).

Stephanie Overby

Senior Editor

CIO magazine and CIO.com