2015 brings a new year and new trends to look out for . CIO magazine asked IT Observers to bring out their inner Nostradamus and predict what we will most likely see in 2015.
Supplier Risk Takes Center Stage
This may be the year companies get serious about managing their IT supplier risk. “As end customers become more aware of a company’s supply chain, the brand risk that comes with a supplier failure go up dramatically,” says Christine Ferrusi Ross, senior vice president with offshoring consultancy Neo Group. “In 2015, companies will begin to really integrate supplier risk into their daily operations, moving from quarterly meeting risk discussions to making key business decisions based on different risk events on a real-time basis.” Political and economic turmoil in countries such as Ukraine and Russia will cause outsourcing customer to care in a more tangible way about the locations of their services providers, says Atul Vashistha, Neo Groups’s CEO. “However, even though these formally would be considered geopolitical risks, because they primarily affect service providers, the location monitoring will fall to sourcing and shared services teams,” Vashistha says. “This is the right approach as we see increased disruptions due to location issues such as shrinking labour pools, changes in laws, weather issues and economic malaise.”
There’s little doubt that smaller deals among multiple providers is the established model for IT sourcing. But in 2015, outsourcers per customers will multiply even further. ”
“The number of service providers each company uses will grow dramatically, driven by growing popularity of cloud in general and Software-as-a-Service [SaaS] in particular,” says Scott Feuless, principal consultant with outsourcing consultancy Information Services Group.
That means governance requirements will also magnify. “Managing service providers, due to increasing application focus and the commoditization of infrastructure, will take on characteristics that we see in software portfolio management today — elimination of duplicated and unused services, allowing for growth, negotiating and negotiating again,” says Scott Fueless, principal consultant with ISG. “Integration will be absolutely critical and is likely to be the key differentiator between one organization’s IT effectiveness and another’s.”
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Tyler Cairns has been a business professional in the technology world for 15 years. Through the years he has had a wide range of experiences that include working with the world’s largest retailers, government organizations of all sizes, non-profit organizations, education institutions and local small to medium-sized businesses. Tyler’s desire to have his customers plan for failures to help solidify their success, has resulted in his clients being able to address their business needs ranging from the basic levels of infrastructure to the complexities brought forth by cloud or adopting “as a service” solutions and everything in between.