This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Outsourcing Growth In Mid-Tier Raises Challenges, Opportunities

STAMFORD, Conn., July 25, 2012 /PRNewswire/ -- Information Services Group (ISG) (NASDAQ: III), a leading technology insights, market intelligence and advisory services company, today published ISG Research showing unprecedented growth in the use of outsourcing by mid-tier organizations, presenting buyers and service providers with new challenges but also expanded opportunities.

"Organizations starting on the sourcing journey often don't know what they don't know about defining objectives, selecting a provider and managing a relationship," said Deborah Card, Partner, Research Services, ISG. "This lack of experience presents a risk. At the same time, first-time outsourcing clients can benefit from the lessons already learned in the marketplace, avoiding many potential mistakes."

Momentum research from ISG Research shows that sourcing activity is entrenched in the world's largest organizations, with over two-thirds of the top 500 companies in the Forbes Global 2000 already engaged in outsourcing prior to 2008. By contrast, fewer than 10 percent of the remaining G2000 companies entered into an outsourcing agreement between 2008 and 2011. 

"Based on discussions with executives,  we believe a significant number of mid-tier organizations will enter the sourcing market for the first time over the next 12 to 18 months," said Card. "To be successful, these clients will need to have an understanding of negotiating techniques and market conditions. The ability to assess offerings in the context of competitive industry dynamics will be especially critical."

The research further shows that between 2008 and 2011, more than 408 different service providers won outsourcing deals among the Global 2000, a sign that the days when a few major players owned the market are clearly over. 

"The growing number of providers reflects a high degree of market complexity," said Card. "Today's buyers require fact-based analyses to understand and effectively navigate a broad range of provider strategies, capabilities and options."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs