| INFRASTRUCTURE OUTSOURCING: A RAPIDLY | | | | CGI, S & T GROUP, DELL, HITACHI, CSS |
| EVOLVING SERVICE | | | | CYBERNET SLASHSUPPORT, CALENCE, |
| Traditional Infrastructure Outsourcing - versus -Remote | | | | WEBULANT, BT GLOBAL, CA, VERISIGN, ENTRUST, |
| Infrastructure Management Outsourcing – versus - | | | | EMC, MICROSOFT, FUJITSU, ACXIOM, |
| IAAS | | | | COMPUTACENTER, IGATE, STERLING |
| Outsourcing suppliers face the strategic dilemma in | | | | COMMERCE, PROGRESS SOFTWARE, REDHAT - |
| Infrastructure Outsourcing (IO) services, caused by the | | | | JBOSS, TIBCO SOFTWARE, E2E TECHNOLOGIES, |
| convergence of 'traditional' (multinational)and offshore | | | | IWAY SOFTWARE, FIORANO SOFTWARE, TMAX |
| suppliers' value propositions, a maturing remote | | | | SOFT, NEC, ENTRUST, FIDELITY INFO SYSTEMS - |
| infrastructure management delivery model, and | | | | FNIS, ATG CORPORATE, TERRADATA, NETEZZA, |
| adoption of laborarbitrage by traditional suppliers. | | | | SYBASE, GREENPLUM, SAND TECHNOLOGIES, |
| During the last decade, the emergence andrapid | | | | VERTICA, NETAPP, BROCADE, SYMANTEC, |
| growth of new models of infrastructure services | | | | VIRTELA, HTC, BABLASOFT, CISCO, RSA, ACCEL |
| delivery, such as Remote Infrastructure Management | | | | FRONTLINE" |
| (RIMO) and Information Management Services are | | | | Keywords |
| showing signs of convergence with more traditional | | | | Information, Technology, Outsourcing, Infrastructure, |
| ways of delivering infrastructure service. | | | | vendors, APPLICATIONS, MONITORING, HELP, DESK, |
| Offshore RIMO suppliers still hold a minorshare of the | | | | SERVICES, DATA, CENTER SERVICES, DESK, TOP, |
| IO market; nonetheless, there are increasing signs of | | | | SUPPORT, STORAGE, SERVERS, LAN, WAN, |
| the sophistication of RIMO leading to a growing | | | | NETWORK, MANAGEMENT, SECURITY, DISASTER, |
| convergence of the modelsof infrastructure delivery. | | | | SERVICES, INFRASTRUCTURE-AS-A-SERVICE, |
| The trend poses a challenge for buyers who need to | | | | CLOUD COMPUTING, REMOTE, INFRASTRUCTURE |
| understand the complexities of the offerings and | | | | , RIMO, OFFSHORING, INFRASTRUCTURES, |
| suppliers whomust refine their strategies. The | | | | VIRTUALIZATION, IAAS, support, networks, systems, |
| convergence of IO models is driving offshore suppliers | | | | SaaS, ITO |
| to one of three choices: | | | | In 2009, the Black Book IT Infrastructure Management |
| - Continue to adopt key elements of the traditional | | | | Outsourcing client/user survey investigates over 700 |
| infrastructure management outsourcing model, | | | | contracts held by 3100 of the top ITO spending |
| - Build added value to their remote offering or | | | | corporations and organizations globally. |
| - Simply continue to focus on classical RIMO services | | | | INFRASTRUCTURE OUTSOURCING: A RAPIDLY |
| that rely on labor savings as a key driver. | | | | EVOLVING SERVICE |
| On the other hand, traditional IO suppliersare | | | | Traditional Infrastructure Outsourcing - versus -Remote |
| confronted with a simpler, but not less challenging | | | | Infrastructure Management Outsourcing – versus - |
| option: | | | | IAAS |
| - Focus on end-to-end infrastructure deals that avoid | | | | Outsourcing suppliers face the strategic dilemma in |
| direct competition or develop variations of a | | | | Infrastructure Outsourcing (IO) services, caused by the |
| converged RIMO/Traditional IO offering with an active | | | | convergence of 'traditional' (multinational)and offshore |
| role of labor arbitrage. | | | | suppliers' value propositions, a maturing remote |
| Evidence of convergence can be seen as offshore | | | | infrastructure management delivery model, and |
| suppliers of remote management services are not | | | | adoption of laborarbitrage by traditional suppliers. |
| limiting themselves anymore to targeting smaller | | | | During the last decade, the emergence andrapid |
| companies with a basic labor arbitrage | | | | growth of new models of infrastructure services |
| valueproposition. | | | | delivery, such as Remote Infrastructure Management |
| Large buyers (above US$10 billion inrevenue) now | | | | (RIMO) and Information Management Services are |
| account for 55 percent of the deals signed by | | | | showing signs of convergence with more traditional |
| offshore suppliers. Although the majority of offshore | | | | ways of delivering infrastructure service. |
| deals are still based on delivering remote services | | | | Offshore RIMO suppliers still hold a minorshare of the |
| offshore, RIMO suppliers held 26 percent of more | | | | IO market; nonetheless, there are increasing signs of |
| traditional deals in 2008 compared to only five percent | | | | the sophistication of RIMO leading to a growing |
| in 2004. | | | | convergence of the modelsof infrastructure delivery. |
| KEY CLIENT EXPERIENCE FINDINGS | | | | The trend poses a challenge for buyers who need to |
| KEY FINDING: MOST IMPORTANT CUSTOMER | | | | understand the complexities of the offerings and |
| SATISFACTION KPIs | | | | suppliers whomust refine their strategies. The |
| Innovation, Trust, Reliability and Deployment are the | | | | convergence of IO models is driving offshore suppliers |
| most important attributes influencing Client Companies' | | | | to one of three choices: |
| satisfaction with their infrastructure outsourcing | | | | - Continue to adopt key elements of the traditional |
| providers. | | | | infrastructure management outsourcing model, |
| KEY FINDING: ITO INFRASTRUCUTRE VENDOR | | | | - Build added value to their remote offering or |
| SATISFACTION IS HIGHEST AMONG MIDMARKET | | | | - Simply continue to focus on classical RIMO services |
| VENDORS | | | | that rely on labor savings as a key driver. |
| Clients with annual revenues from $500M to $1B are | | | | On the other hand, traditional IO suppliersare |
| significantly more satisfied with their Infrastructure | | | | confronted with a simpler, but not less challenging |
| Outsourcer than are Large Market Cap clients. | | | | option: |
| KEY FINDING: US VENDORS ARE SIGNIFICANTLY | | | | - Focus on end-to-end infrastructure deals that avoid |
| PREFERRED BY US CLIENTS | | | | direct competition or develop variations of a |
| Latin American alternatives are challenging Indian | | | | converged RIMO/Traditional IO offering with an active |
| infrastructure vendors as they evolve, although two | | | | role of labor arbitrage. |
| vendors, HCL and TCS are commanding market | | | | Evidence of convergence can be seen as offshore |
| growth share and commanding global user respect. | | | | suppliers of remote management services are not |
| Table of Contents : | | | | limiting themselves anymore to targeting smaller |
| Introduction 6 | | | | companies with a basic labor arbitrage |
| Summary of Results 14 | | | | valueproposition. |
| Overall Top Performers 18 | | | | Large buyers (above US$10 billion inrevenue) now |
| Methodology & Overview 19 | | | | account for 55 percent of the deals signed by |
| Ranking of ITO Infrastructure Vendors by Service Line | | | | offshore suppliers. Although the majority of offshore |
| Ranking of REMOTE INFRASTRUCTURE | | | | deals are still based on delivering remote services |
| MANAGEMENT OUTSOURCING VENDORS" | | | | offshore, RIMO suppliers held 26 percent of more |
| Industry: Sourcing: IT Outsourcing | | | | traditional deals in 2008 compared to only five percent |
| | | | in 2004. |
| Companies Mentioned | | | | KEY CLIENT EXPERIENCE FINDINGS |
| EDS, IBM, ACCENTURE, HEWLETT PACKARD, | | | | KEY FINDING: MOST IMPORTANT CUSTOMER |
| PEROT SYSTEMS, T SYSTEMS, CSC, WIPRO | | | | SATISFACTION KPIs |
| INFOCROSSING, ATOS ORIGIN, CAPGEMINI, HCL | | | | Innovation, Trust, Reliability and Deployment are the |
| TECHNOLOGIES, TATA CONSULTANCY | | | | most important attributes influencing Client Companies' |
| SERVICES, UNISYS, ACS, INFOSYS, GETRONICS, | | | | satisfaction with their infrastructure outsourcing |
| LOGICA, COGNIZANT, MAHINDRA SATYAM, | | | | providers. |
| CIBER, ONE NECK, CH2M HILL MANAGED | | | | KEY FINDING: ITO INFRASTRUCUTRE VENDOR |
| SERVICES, IBM GLOBAL, ITC INFOTECH, | | | | SATISFACTION IS HIGHEST AMONG MIDMARKET |
| MICROLAND, COMPUCOM, N FRAME, ACCEL | | | | VENDORS |
| FRONTLINE, ATG CORPORATE SOLUTIONS, | | | | Clients with annual revenues from $500M to $1B are |
| CONNECTRIA, VERIZON, DIGICA, | | | | significantly more satisfied with their Infrastructure |
| COMPUCOM, BLUE HILL DATA SERVICES, OAO | | | | Outsourcer than are Large Market Cap clients. |
| TECHNOLOGY SOLUTIONS, LARSEN & | | | | KEY FINDING: US VENDORS ARE SIGNIFICANTLY |
| TOUBRO INFOTECH, | | | | PREFERRED BY US CLIENTS |
| TECH MAHINDRA, SIEMENS BUSINESS SOLUTIONS, | | | | Latin American alternatives are challenging Indian |
| TECHTEAM, POMEROY IT, LIONBRIDGE, NIIT | | | | infrastructure vendors as they evolve, although two |
| TECHNOLOGIES, LUXOFT, TIETO ENATOR, CPM | | | | vendors, HCL and TCS are commanding market |
| BRAXIS, STEFANINI, ORACLE, SAP, PATNI, SUN | | | | growth share and commanding global user respect. |
| MICROSYSTEMS, NORTHROP GRUMMAN, SAIC, | | | | |