September 17, 2019

September 17, 2019

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September 16, 2019

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CIO Magazine Highlights Cost and Speed as 2015’s Outsourcing Trends to Watch

CIO magazine has named its top 10 outsourcing trends for 2015. Speaking with consultants, lawyers, and service providers,CIO predicts a big year ahead for the multibillion-dollar industry as both standardization and flexibility become big drivers in the marketplace over the next 12 months. This year may also witness a new era of faster sourcing decisions and the end of an old standby: the request for proposal (RFP) process.

Among the key trends, pricing and market response remain the biggest drivers. Sourcing experts predict a shift in the cost of outsourcing as companies on both sides of deals embrace outcome-based pricing as a hedge against expensive, upfront investment costs. Analysts also expect to see businesses opting for multisource cloud-based solutions rather than the tower-based outsourcing model that has been dominant in the industry for years. Such a decentralized approach should drive down costs while decreasing the risk inherent in sole-supplier outsourcing arrangements.

Finally, as customers look to make quick decisions on whether to use new and rapidly evolving technologies, outsourcing providers expect to see fewer RFPs. Instead of the time-consuming RFP process, procurement teams will face pressure to integrate outsourced solutions on a faster timeline than the RFP typically allows, and business discussions with providers about the integration outsourcing proposals and solutions are likely to proceed in parallel with legal negotiations.

Check out the full top 10 here.

Copyright © 2019 by Morgan, Lewis & Bockius LLP. All Rights Reserved.


About this Author

Barbara Melby, Morgan Lewis, data privacy and cybersecurity lawyer

Barbara Melby has been active in the outsourcing and technology transaction legal market for the last 25 years. As leader of the firm’s technology, outsourcing & commercial transactions practice, she represents clients in such complex transactions as outsourcing, strategic alliances, technology and data-related agreements, and other services transactions. She also advises businesses on privacy and security issues that arise in transactions involving sensitive data and technologies.