ComputerWeekly.com: Cognizant Chief Strategist Looks at the Market Trends Driving IT Outsourcing

In a chat with Karl Flinders, Malcolm Frank says that two market trends are driving IT outsourcing. “The first one is a more traditional advantage of outsourcing with businesses looking to reduce their capital spending and operational costs. Clients are outsourcing to get efficiencies in their business models. But perhaps more interesting is the second trend: The fact that businesses are outsourcing innovation. This is happening in four key areas: mobility; social computing; cloud; and big data. We have seen these four, whether discreetly or in conjunction, driving demand where customers are trying to transform core business processes using these technologies. The numerous austerity periods of last ten years have made businesses focus on cost cutting and as a result have become more dependent on suppliers for R&D.”

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