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Post Pandemic outsourcing trends for CEO’s

It has been a year into the pandemic, however, there is very little evidence and clarity as to how the outsourcing sector has so far been impacted by COVID-19.

Boston Consulting Group and the University of Auckland studied over the last 12 months how client firms and vendors reacted to the pandemic, and consequently the outsourcing and digital transformation strategies client firms have already implemented and those they plan to introduce as we gradually move into a new post-pandemic world.

The study is based on dozens of interviews and an extensive survey of the largest 200 consumers of outsourcing services around the globe. Some of the surprisings findings show that client firms move towards a selective digital transformation strategy, accelerating the implementation of some digital services while terminating services that were in the panning prior to the pandemic.

Also, 60% of the client firms will be renegotiating contracts with vendors, having realised that both the line of service and the commercial model are unlikely to accommodate their needs in a post-pandemic era. Last but not least, developing critical in-house capabilities is high on the client’s priority list for recovery in the next 24 months. The report enclosed here offers a complete review of our study with 5 steps every IT leader should take into account in the coming months.

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