Unrest at BBC shows need for better outsourcing management
Published: 23 Aug 2004 12:10 BST
The BBC may find the union backlash has an adverse effect on the quality of services in the short to medium term. For SBS, the deal may prove to be an expensive way to develop a new market segment, and burden it with the management of a problem workforce.
From a broader perspective, this agreement demonstrates the increasingly exposed position of many internal IT services organisations. Many of them will be subject to "insourcing" -- being spun off as separate entities. Gartner believes that 70 percent of IT insourcing over the next three years will involve three business models. A fifth of internal IT organisations will become joint ventures; 30 percent will turn into brand service companies, and the rest will be fully outsourced or sold to vendors. For many service providers, acquiring a client's internal IT operation in exchange for a long-term outsourcing contract has become an explicit business strategy.
Tactical Guidelines
Organisations considering insourcing should carefully manage their approach. Those considering such deals should:
Service providers should:
Key Issues
What are the key trends, market forces, drivers and inhibitors that are shaping the infrastructure outsourcing market?
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