SIG Sound Bytes: TPI, MindTree, China and the Next SIG Event
April 2nd, 2010By Kirk Laughlin
Adjusting to the ‘new normal’, vendor management transformation in a post-recessionary environment, managing procurement vs. finance corporate showdowns and making sourcing relationships really work – these were just a few of the top level themes dominating the top flight S.I.G. event that just wrapped up yesterday in Savannah, Georgia.
Some key takeaways and insider news items that we picked up during the event:
China Meltdown: The Google-China clash of recent weeks, and other troubling signs of favoritism shown to domestic service providers and industry, are causing many to believe that the ‘open door’ policy of the last ten years is suddenly get slammed shut. On stage and in offline meetings, leading consulting firms and players in the market are quick to say that the political risk in China is something to take very seriously. It’s as if China has suddenly spiked on the risk scale and those with investments there need to take a hard look at diversification outside of the country. Even a China-based consultancy – which aims to play on the same field as IBM and Accenture one day – has representatives at the SIG event. When asked about the intensifying problems, the consultant said – “It’s all real.” By the way, Business Week has been doing a strong job covering this story and the implications for U.S. companies struggling to deal with the loss of access and eminence they once enjoyed.
MindTree Returns to the Nearshore: Insiders tell Nearshore Americas that India-based IT Solutions Provider MindTree which established a delivery center in Mexico in 2008, but quietly shut it down sometime after that – will be re-establishing a center in Mexico sometime in the second quarter of this year. The motivation to re-initiate a center is driven by the need to service a particular customer, sources said. MindTree spoke at the SIG event along with one of its customers, Avis Budget Group.
The Biggest Mistakes You Can Make in Your Outsourcing Deals
February 24th, 2010During the past year, 50% of 1,073 organizations worldwide saw a sharp uptick in outsourcing contract renegotiations, according to recent research from Gartner Inc. in Stamford, Conn. Many of those contracts were renegotiated in a bid to cut costs, due to the recession.
The recession causes bad behavior on both sides of the coin, the client and the supplier,” said analyst Allie Young, research vice president and distinguished analyst in Gartner’s technology and service provider group.
This seemed like a good time to look for the warning signs of an outsourcing deal gone bad. We spoke with three experts on the misconceptions, missteps and mistakes that spell trouble. In this first article of a two-part series, TPI’s Thomas Young, explains how lack of innovation and productivity gains, as well as culture clashes, can break down an outsourcing contract. Be prepared for self-examination. Many of the telltale signs have more to do with …
Europe Outsourcing Spend is Bigger than North America
December 17th, 2009TPI, the largest sourcing data and advisory firm in the world and a unit of Information Services Group, Inc. (ISG), an industry-leading information-based services company, today released data showing that through the first three quarters of 2009, Europe surpassed North America as the leading region in the world for outsourcing spending by Forbes Global 2000 (G2000) companies and is on track to end the year as the highest-spending region for the first time.
According to the TPI Momentum(SM) Market Trends & Insights 3Q09 Geography Report, European G2000 companies outspent their North American counterparts by approximately $1.2 billion in average annual contract value (ACV) through the third quarter. North America, which led the world in outsourcing spending by G2000 companies in 2008 with $29.6 billion in ACV versus $28.7 billion for Europe, looks poised to miss that mark this year and lose its top spot.
The TPI Momentum Market Trends & Insights 3Q09 …
