External service providers apply pressure on businesses to shrink their in-house staffs.
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Pressures from external service providers will soon force changes in business technology employment, according to two independent reports issued Wednesday.
The reports, released by Gartner and The Yankee Group, suggest that competition from external service providers is forcing business managers to make tough decisions about their internal business departments.
Gartner warned that competition from outsourced IT providers will offer higher standards of service and price, and predicts that by 2015 the number of IT staff in business technology will decrease by 15 percent.
The research firm predicts that six out of 10 people in information systems (IS) will assume business-facing roles by 2010, resulting in a one-third decrease in IT departments within large and mid-size companies.
John Mahoney, chief of research for IT services and management at Gartner, advises managers either to focus on the reinvention of business management processes or to shift their focus to the outsourcing of IT services.
“Our advice to IS leaders is that, although they have some very difficult decisions to make over the fate of their department, they need to act now as the transition will take a number of years,” Mr. Mahoney said at the Symposium ITxpo in Barcelona.
Telecom Staffing
Meanwhile, research by The Yankee Group suggests that the big players in telecommunications are starting a growing trend in the outsourcing of their entire human resource departments. While many telecom companies currently outsource several HR services, such as payroll and benefits administration, more are shifting to full-service human resources business process outsourcing (HR BPO).
BT, AT&T, and Motorola are three telecom giants who have outsourced full-service HR processes. BT’s recent renewal of its contract with Accenture verifies the benefits of full outsourcing, and may give justification to other telecom companies to follow suit.
Phil Fersht, research vice president of business process outsourcing at the Yankee Group, is keeping a close eye on SBC. “If SBC chooses the HR BPO path, it will be an emphatic validation of the business benefits of outsourcing HR processes,” said Mr. Fersht.
The reports, released by Gartner and The Yankee Group, suggest that competition from external service providers is forcing business managers to make tough decisions about their internal business departments.
Gartner warned that competition from outsourced IT providers will offer higher standards of service and price, and predicts that by 2015 the number of IT staff in business technology will decrease by 15 percent.
The research firm predicts that six out of 10 people in information systems (IS) will assume business-facing roles by 2010, resulting in a one-third decrease in IT departments within large and mid-size companies.
John Mahoney, chief of research for IT services and management at Gartner, advises managers either to focus on the reinvention of business management processes or to shift their focus to the outsourcing of IT services.
“Our advice to IS leaders is that, although they have some very difficult decisions to make over the fate of their department, they need to act now as the transition will take a number of years,” Mr. Mahoney said at the Symposium ITxpo in Barcelona.
Telecom Staffing
Meanwhile, research by The Yankee Group suggests that the big players in telecommunications are starting a growing trend in the outsourcing of their entire human resource departments. While many telecom companies currently outsource several HR services, such as payroll and benefits administration, more are shifting to full-service human resources business process outsourcing (HR BPO).
BT, AT&T, and Motorola are three telecom giants who have outsourced full-service HR processes. BT’s recent renewal of its contract with Accenture verifies the benefits of full outsourcing, and may give justification to other telecom companies to follow suit.
Phil Fersht, research vice president of business process outsourcing at the Yankee Group, is keeping a close eye on SBC. “If SBC chooses the HR BPO path, it will be an emphatic validation of the business benefits of outsourcing HR processes,” said Mr. Fersht.
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Blog Sponsored by - OffshoreITStaffing.com
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Blog Sponsored by - OffshoreITStaffing.com
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1 comment:
Good information providing telecom staffing
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