Do-It-Yourself (DIY) in IT

30 Aug 2018
by Salil Dani, Parul Jain

The enterprise demand profile is increasingly becoming more dynamic, and enterprises are looking to restructure their service delivery models in accordance with this growth and evolution. While service providers continue to account for a larger share of the IT services market as compared to GICs, there has been a marked shift in the sourcing mix (i.e., ratio of work offshored to service providers as compared to that given to GICs), especially in the recent years. This trend, aptly called Do-It-Yourself (DIY), is being witnessed across financial services, Consumer Packaged Goods (CPG), oil & gas, and other industry verticals. To comprehend the situation better, Everest Group analyzed the key factors driving this trend and its associated implications on the enterprise sourcing model design.

This viewpoint explores the following drivers:

  • Shift in focus from cost arbitrage to value arbitrage
  • Increase in offshoring of more complex and judgment-intensive work
  • Challenges with the performance of service providers in comparison to expectations
  • Shift in IT service delivery from traditional waterfall to agile methodology
  • Business preferences and considerations of enterprises

Additionally, Everest Group recommends key steps for strategic sourcing leaders to design the optimal target sourcing model for their enterprises

Membership(s)

Market Vista™

 

Page Count: 11