As we move into the new year, industry-watchers are revealing their predictions about business trends for 2013. Given the fact that many companies are looking closely at making IT changes that could bring about dramatic business transformation, technology and business management experts are especially interested in data center outsourcing trends.
So what might we expect to see in 2013?
Results are taking center stage.
Reducing costs will continue to be a fundamental business mantra. But when it comes to IT outsourcing, many companies are modifying that rule with a new consideration: money isn’t everything.
That’s because for many companies, value is now receiving top billing. There’s no question that the numbers still matter, but top executives have begun to formally acknowledge that agility is a life-critical internal resource. Without it, companies can no longer remain cutting-edge and competitive.
Offshoring is losing ground.
Large American companies that have relied for the past few years on outsourcing a wide range of business activities to foreign countries are beginning to re-think that decision. Worldwide economic conditions have narrowed pricing differences between offshore and onshore alternatives, and in some instances public or customer backlash has affected decision-making.
Nonetheless, less expensive international locations may still have appeal for routine or lower level tasks.
Onshoring is gaining ground.
We’re already seeing increased interest in domestic data center outsourcing – sending the work out of house but keeping it within the United States. Companies are particularly anxious to obtain US-based support, but domestic outsourcing is also expected to offer higher quality performance, better communication with service providers and greater overall control.
Negotiations are becoming more complicated.
Companies searching for increased value will insist on more effective management of problems such as incidents or even changes. They’re likely to require use of cloud-based service management systems to create a uniform way of monitoring performance.
Pricing structures are evolving and becoming more complex than the standard pay-for-what-you-get model. In part, that’s because companies are looking to data center outsourcing to provide more than a simple shift of management activities. Instead, they view outsourcing as an investment in their IT future and expect providers to provide innovative assistance to maximize automated processes and help them take better advantage of cloud-based technologies.
Companies still reeling from years of poor economic conditions are negotiating longer payment terms and other details that give them greater flexibility and control over cash flow.
And both purchasers and suppliers of data center outsourcing will show renewed interest in ensuring formal agreements include specifics transition and transformation details. Those that have allowed contracts to remain vague in the past have – not surprisingly – seen frustrating levels of delay or even outright failure to complete projects.
Cloud computing gains ground.
As the cloud has gained widespread corporate acceptance, it’s coming into its own as a valuable tool to facilitate broad-scale business transformation. Some companies are turning to cloud computing even if it turns out to cost more, because it’s seen as providing greater agility and better alignment of financial and IT priorities. That makes the cloud a competitive alternative to data center outsourcing.
More pervasive use of the cloud to drive applications means data center outsourcing will have to more effectively support “user experience management.” The needs of end users – a company’s own employees or even customers – will carry more weight when determining IT priorities. That means your IT people and the rest of your employees need to collaborate better.
What do you think will be the hottest data center outsourcing trend for 2013?
Photo Credit: Mike Licht
