Patni Computer Systems Ltd today revealed the results of its recent CIO survey conducted at its annual customer conference, 'PatniConnect'. According to the survey, 45 per cent of the respondents prefer leveraging multiple vendors for specific project requirements with work competitively distributed, as opposed to 17 per cent favoring global deals with a single service provider.
The Company conducted the survey among over 100 Global CIOs and business leaders from among its own customer base spread across the US, Europe and Asia.
The survey also revealed the global CIO's vision on IT strategy and outsourcing, investments and initiatives, and customer-vendor relationship.
IT Strategy & Outsourcing:
a. With multi-sourcing gaining traction within the industry, vendor selection is moving away from a country-specific to a more global, talent-based destination mix.
32 per cent still depending largely on India for offshore requirements
29 per cent selected sourcing requirements from multiple locations
23 per cent of the respondents mix a large local sourcing component with an offshoring component.
b. Although cost savings is still an important factor in selecting an outsourcing partner, 33 per cent of the respondents indicated that quality of services was the primary concern. Cultural fit, the top choice in last year's survey, slipped to third place at 15 per cent, while lowest cost was tied with flexibility for fourth in importance at 10 per cent.
c. While the number of those employing IT-based captives was up slightly from last year, an overwhelming 67 per cent of the respondents indicated that they do not have captive offshore facilities and have no plans to set them up. Customers see captive facilities as a substantial obligation and as long as they are getting measurable results from their service providers, they do not see any reason to run their own centers offshore.
Investments & Initiatives:
a. Technologies such as Web Services, SOA and Business Service Management (BSM) were rated high investment areas over the next two years. Increasing emphasis on Web services and SOA indicates that CIOs want technologies that allow more flexibility.
b. 94 per cent of the respondents cited an increase in their outsourcing budgets overall, with 65 per cent indicating increases ranging from 5 per cent to 35 per cent.
a. The risk / reward framework (fixed price contracts with pre-defined SLA commitments) is the most preferred mode of commercial engagement allowing for a more globally competitive environment (29 per cent), followed closely by fixed price contracts (26 per cent) where customers are cushioned against industry inflation in specific economies.
The company provides a platform for its clients, IT and business leaders, and academic professionals to interact with its' senior management and debate future trends in IT and outsourcing. This year, Patni celebrated its third anniversary, featuring keynotes by Tom Stewart, editor-in-chief of the Harvard Business Review and IDC's David Tapper, research director, IT outsourcing, utility services and global offshore services.
The three-day event in Austin, Texas was attended by key executives from across the technology, product engineering, insurance, financial services, telecommunications and manufacturing segments.