outsourced it services: industry trends & barriers to success

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Page 1: Outsourced IT Services: Industry Trends & Barriers to Success

OUTSOURCEDIT SERVICES

TRENDS & BARRIERSTO SUCCESS

Page 2: Outsourced IT Services: Industry Trends & Barriers to Success

THE TOTAL VALUE OFOUTSOURCED IT CONTRACTSWORLDWIDE 2000 - 2015HTTP://WWW.STATISTA.COM/TOPICS/1900/IT-OUTSOURCING/

$63.5BILLION

Page 3: Outsourced IT Services: Industry Trends & Barriers to Success

21,700Computer Programmer & Software

Engineer JobsTransitioned Overseas from US in 2015

http://www.statisticbrain.com/outsourcing-statistics-by-country/

Page 4: Outsourced IT Services: Industry Trends & Barriers to Success

US Metro Areas with HighestOutsourcing Rates

San JoseSan FranciscoBostonAtlantaNew YorkChicagoHoustonLos AngelesDetroit

18%

16.5%

14%

13%12.5%

12%

11%10.5%

10%http://www.statisticbrain.com/outsourcing-statistics-by-country/

Page 5: Outsourced IT Services: Industry Trends & Barriers to Success

Top Outsourcing Countries

IndiaIndonesiaChinaBulgariaPhilippines

http://www.statisticbrain.com/outsourcing-statistics-by-country/

Page 6: Outsourced IT Services: Industry Trends & Barriers to Success

OUTSOURCED ITSERVICES

Common Barriers to Excellence

Page 7: Outsourced IT Services: Industry Trends & Barriers to Success

Lack of VendorManagement Training

Too often, the transition from in-house tooutsourced occurs, and remaining business teamIT managers are not equipped with the unique skill

set needed to manage a third-party team tosuccess.

Page 8: Outsourced IT Services: Industry Trends & Barriers to Success

Poor RelationshipBuilding SkillsTo deliver excellent results, the two teams must

operate as one. Key team members mustpossess outstanding relationship building skills

to cultivate an engaged, collaborativeenvironment despite geographic barriers. With

IT training focused almost exclusively ontechnical skills, many IT professionals andmanagers need to build skills in this area.

Page 9: Outsourced IT Services: Industry Trends & Barriers to Success

Lack of Definition RegardingRoles & Expectations

What does project success like? Who isaccountable for achieving success? Noteam will achieve excellence withoutclearly defined goals and expectations.

Page 10: Outsourced IT Services: Industry Trends & Barriers to Success

Cultural CommunicationDifferences

It is no secret that diverse cultural groups havedifferent styles of communicating.

Understanding the differences between highand low context cultural communication

styles is key to ensuring mutual understandingand building a collaborative culture.

Page 11: Outsourced IT Services: Industry Trends & Barriers to Success

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Performance Management & Alignment.