IT Infrastructure Outsourcing Providers' Converging Value Propositions Creating Strategic Dilemma: Everest and Bernstein Webinar July 10

Business Wire,  July 1, 2008  

Tags: arbitrage, Bernstein & Co., convergence, industry, Institute

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DALLAS -- The strategic dilemma facing Infrastructure Outsourcing (IO) suppliers - caused by the convergence of 'traditional' (multinational) and offshore suppliers' value propositions, a maturing remote infrastructure management delivery model, and adoption of labor arbitrage by traditional suppliers - will be discussed in a one-hour Webinar hosted by analysts from the Everest Research Institute and Sanford C. Bernstein & Co. During the last decade, the emergence and rapid growth of new models of infrastructure services delivery, such as Remote Infrastructure Management (RIMO) and Information Management Services (IMS), are showing signs of convergence with more traditional ways of delivering infrastructure service. The Emerging Supplier Dilemma in the Remote Infrastructure Management Market report will be discussed in a one-hour Webinar on July 10 (10 a.m. CDT; 11 a.m. EDT).

According to Ross Tisnovsky, Vice President of ITO Research at Everest Research Institute, and Senior Analyst Rod Bourgeois of Sanford C. Bernstein & Co, offshore RIMO suppliers still hold a minor share of the IO market; nonetheless, there are increasing signs of the sophistication of RIMO leading to a growing convergence of the models of infrastructure delivery. The trend poses a challenge for buyers who need to understand the complexities of the offerings and suppliers who must refine their strategies, said Tisnovsky.

"The convergence of IO models is driving offshore suppliers to one of three choices," said Tisnovsky. "They can continue to adopt key elements of the IMS model, build added value to their RIMO offering or simply continue to focus on classical RIMO services that rely on labor savings as a key driver. On the other hand, traditional IO suppliers are confronted with a simpler, but not less challenging option: focus on end-to-end infrastructure deals that avoid direct competition or develop variations of a converged RIMO/IMS offering with an active role of labor arbitrage."

Evidence of convergence can be seen as offshore suppliers of remote management services are not limiting themselves anymore to targeting smaller companies with a basic labor arbitrage value proposition, says Bourgeois. Large buyers (above US$10 billion in revenue) now account for 55 percent of the deals signed by offshore suppliers. Although the majority of offshore deals are still based on delivering remote services offshore, RIMO suppliers held 24 percent of more traditional 'IMS-like' deals in 2007 compared to only five percent in 2004.

The 45-minute Webinar, followed by 15 minutes of questions and answers with participants, will take place on July 10, 2008, at 10 a.m. CDT; 11 a.m. EDT. To register, please visit: www.everestresearchinstitute.com/Events/Webinars.

For more information about this Webinar or other research services, please e-mail info@everestresearchinstitute.com or call +1-214-451-3110.

This Webinar is part of an ongoing collaboration between Bernstein and Everest for the past six years to conduct joint research and share collective findings with industry participants.

About Everest Research Institute

Everest Research Institute (www.everestresearchinstitute.com) serves as a central source of independent and objective strategic intelligence, analysis, and actionable insight for leading corporations, service providers, and investors in the global outsourcing and offshoring marketplace. The Institute addresses both business process and information technology sourcing topics, providing the global outsourcing and offshoring community with information that empowers highly productive, sustainable sourcing strategies and relationships. The Institute's distinguished Board of Advisors, senior executives and thought leaders oversee the Institute's research agenda to ensure that it fully supports the business needs of corporations, service providers and investors.

Everest Research Institute members receive access to unparalleled analytical and advisory services, including access to Everest analysts, in-depth reports on major outsourcing and offshoring topics, white papers on market-shaping events, and Webinars designed to provide insight and information about important market trends. The Institute's wealth of knowledge and experience provides members with unique perspectives into today's marketplace and the competitive edge required to take advantage of emerging opportunities.

Everest Group is a global operational strategy consulting firm with offices in such leading business centers as Dallas; Gurgaon, India; London; Amsterdam; New York; Toronto and Melbourne. An industry leader since 1991 when we created the sourcing consulting category, Everest Group has earned a worldwide reputation for ongoing innovation as we help clients achieve maximum value from their operations, which includes sourcing strategy and implementation. Everest created the Everest Research Institute (www.everestresearchinstitute.com) as the central source of industry information. Please visit www.everestgrp.com and www.everestresearchinstitute.com for more information.