Forrester: Process change outsourcing posts biggest growth
A Forrester survey shows that process change/re-engineering work ranks highest in the list of services that US companies plan to outsource for 2005.
Survey respondents were clients availing of companies’ IT services. It showed 34% of the respondents as willing to outsource business process change/re-engineering work – a 10% increase from 2004’s 24%. A similar increase was seen in the need for consulting and systems integration services. On the other hand, outsourcing projects for architecture design/planning experienced the biggest drop in client favor with a preference rating down to 18% from last year’s 31%.
The survey took down client considerations in hiring vendors, the top two being industry expertise and domain knowledge, which garnered 39% and 36% from respondents, respectively. Pricing came only at a distant third in the factors for consideration. This shouldn’t come as a surprise though as stability has been seen in rates for this year. "Two years ago, rates were still dropping, but this year out research indicates that time and material rates have stopped falling," the Forrester survey says.
Other strong presences in the outsourcing services are:
- infrastructure rationalization/server consolidation
- web site design
- HR applications
- ERP
- CRM
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