Worldwide IT Outsourcing market Digitalization puts pressure on all organizations Business leads technology Large contract renegotiation New working & pricing models Flexible sourcing models Project management trends Co-opetition between IT service providers Focus on risk Employment strategies New technology trends

1. IT Outsourcing
Trends
2015 & beyond

2. 1. Worldwide IT Outsourcing market
2. Digitalization puts pressure on all organizations
3. Business leads technology
4. Large contract renegotiation
5. New working & pricing models
6. Flexible sourcing models
7. Project management trends
8. Co-opetition between IT service providers
9. Focus on risk
10. Employment strategies
11. New technology trends
Agenda

3. WORLDWIDE IT OUTSOURCING
$100 BILLION
worth of outsourcing contracts will be
renegotiated in the following year, according to
Stanton Jones.
Number of outsourcer
per company will
multiply even further
Organizations want in on the cloud
More than half of all UK organizations are using, or planning to use, public cloud
vendors. The satisfaction with these cloud vendors, such as Amazon, Google,
Microsoft, Oracle, Rackspace, Salesforce.com and SAP is generally high
Focus on core business is the main driver for outsourcing
When asked for the main drivers of employing ITO services, 68% of the respondents cited a
need for their companies to focus on core businesses. Organizations looking to outsource more
this year are also returning to investing to support the business, after sweating existing
assets during the economic downturn in the late 2000s.
Cloud, utility computing,
and virtualization will
converge, and
everything will start to
look the same
Businesses will continue to outsource…
The market of outsourcing companies is expected to
grow. In UK for example 69% of respondents in a
survey say they will continue to outsource at the same
rate or even more.

4. MORE EXPECTATIONS
Digitalization is transforming organizations, putting pressure on
organizations to adapt. As a consequence they will replace reactive
service providers that lack innovation and business understanding
with strategic technology partners that are able to deliver deep
technology driven innovation

5. BUSINESS LEADS TECHNOLOGY
Technology will be purchased more and more by business
leaders rather than IT departments.
Organizations will migrate to a service brokerage model,
focusing on rationalization, integration and security

6. LARGE CONTRACTS RENEGOTIATION
Many customers will replace traditional
outsourcing with multisourcing, cloud-based
models

7. PROCUREMENT PROCESS
The traditional RFP fades in front of emerging procurement
methods as it takes too long to define specifications & it
costs too much. Business requirements change and it takes
a collaborative approach to identify needs and proactively
define specifications

8. NEW WORKING MODELS
Labor as a Service

9. NEW PRICING MODELS
Business outcome based pricing,
pricing based on performance

10. HYBRID OUTSOURCING
Offshoring is no longer the default. A hybrid model that
leverages onsite, onshore, nearshore and offshore
tends to be acknowledged as the best sourcing strategy

11. OUTSOURCING PARTNERS
Managing service providers, due to increasing application focus and the commoditization
of infrastructure, will take on characteristics that we see in software portfolio management
today -- elimination of duplicated and unused services, allowing for growth, negotiating
and negotiating again (…) Integration will be absolutely critical and is likely to be the key
differentiator between one organization's IT effectiveness and another's.”
Scott Fueless, principal consultant with ISG
Large deals will disaggregate in smaller ones for more
transparency & control and small projects might be aggregated into
complex, enterprise wide solutions for better project governance &
to achieve business goals. Outsourcers per customers will multiply
even further, making project governance a complex task
”

12. OUTSOURCING CO-OPETITION
Multi-sourcing strategies will oblige competing service
providers to work together to achieve common business
goals. Various organizations already implemented
“outsourcing cooperation agreements” that bind service
providers to cooperate at operational level

13. DATA-DRIVEN OUTSOURCING
Enterprises will choose IT services partners based on
cost, project transparency & data to understand
optimization opportunities

14. DOMESTIC SOURCING & INSOURCING
Domestic sourcing & insourcing will remain in the
game, sometimes brought back, especially for projects
that require senior, experienced teams, agility, cultural
alignment & local business understanding

15. PROJECT GOVERNANCE
The growing complexity & diversity of service providers
ecosystem transformed project governance into a critical
capability, enabling organizations to manage
performance, risk and compliance

16. PROJECT MANAGEMENT
The day of project management amateurs is over, organizations are
struggling to attract entrepreneurial Project Managers.
Projects get more complex therefore PMs need to become masters in
coordinating various tasks, teams and sources.
• crowdsourcing (eg: Wazoku Idea Spotlight)
• big data (for cost projections or hidden correlations)
• methodologies adapted to project scope (high focus on agile)
• dedicated collaboration tools/central project hubs (eg: Slack, Yammer,
Salesforce Chatter, Flowdock) gain grounds in front of the traditional
emails
• gamification (rewards & points to make boring tasks more enjoyable

17. INTERNAL SERVICE INTEGRATION COMPETENCIES
The increasing complexity of the multi-sourced
environments makes internal service integration
competencies strategic. This enables organizations to
keep control, make sure all services are compliant and
select easier niche service providers for future needs

18. FOCUS ON RISK
Integrating supplier risk into business operations
Business decisions based on different real-time risk events

19. FOCUS ON RISK
Geopoliticalrisks are asserted – caution about countries
with political and economic turmoil to avoid disruptions

20. EMPLOYMENT STRATEGIES
IT service providers will increasingly use gamification to
keep employees engaged during the performance of
routine and monotonous tasks

21. EMPLOYMENT STRATEGIES
BYOD / Work from home
Security challenges & strategies

22. EMPLOYMENT STRATEGIES
Strategic focus on HR strategies, recruitment,
talent retention & talent pool creation, SDC &
certification programs;
Recruiters need to enter the marketing game

23. NEW FORMS OF SOCIAL INTERACTION
Communities (online and offline) will form around
products and solutions, being the source of new ideas
that develop the product, and a way to recruit new
employees.
Forum

24. CLOUD COMPUTING
As the industry becomes more and more
comfortable working with the cloud, the
industry is becoming even more
comfortable with the benefits of
standardization -- increased efficiency,
virtualization, reduced support costs.
Thus, even in bespoke outsourcing
arrangements, there may well be more
similarity than difference, both within a
single company's formerly complicated IT
environment, and across companies --
both client and provider. The cloud, utility
computing, and virtualization are
converging to create this new operating
model that will become the new paradigm
for IT outsourcing.
Joshua'Konvisser,'Pillsbury'Winthrop'Shaw'Pittman
”
Cloud comes down to
earth

25. SMART MACHINES MOVING UP THE VALUE CHAIN
As artificial intelligence evolves, development and
implementation of robot like technologies will be used
to automate tasks and processes currently performed
manually in house or through outsourcing partners

26. • We'offer'discrete'solutions'to'known'business'challenges'and'build'bespoke'solutions'for'your'specific'
requirements.
• Our'delivery'models'encompass'the'full'range'of'development'options'and'our'ability'to'engage'from'nearshore'
with'UK'presence,'as'required,'gives'you'full'control'over'costs.
• We'offer'a'refreshing'approach'to'commercials,'enabled'by'our'unique'structure.
• Our'final'building'block'to'deliver'the'right'business'solutions'for'you'is'in'depth'knowledge'of'your'industry'
sector.'This'means'we'talk'your'language'and'understand'the'business'impact'of'our'solution.''''
Banking Insurance
HourlyT&M
Application
Development
.NET, Java,?PHP/LAMP,?C/C++
Amazon, Windows?Azure, Salesforce
Ios, Android,Windows?Phone,?Blackberry,?HTML5
Ruby?on Rails, Python,?Embedded Software,
Databases, Sharepoint,?SAP, Microsoft, Oracle,
Other Technologies
Application
Testing
Application
Support
IT
Consultancy
Project
Management
Business
Analysis
Fixed Price
Nearshore
Agile
System Integration
Information Security
EnterpriseMobility
Web Applications
CRM?&Loyalty
MobileApplications
BusinessIntelligence
Cloud Strategy
eCommerce?Development
Cloud Migration
Big?DataConsultancy
Big?Data?Dashboards
Iterative Waterfall Prototyping
Onshore Combined
SLA?driven
Team
Augmentation
Dedicated
Team
Leasing ITC Retail eCommerce Travel Healthcare Media
B U S I N E S S S O L U T I O N S
Industry
Expertise
Commercial
Models
Engagement
Models
Delivery
Models
Discrete
Solutions
Core
Technologies
Core
Services

27. • Our'client'list,'representing'key'industry'sectors,'reflects'Euro'IT'Groups’'ability'to'deliver'high'quality,'on'time,'services'to'
organisations from'worldwide'recognised brands'through'to'innovative'startups.'Euro'IT'Groups'adaptability,'based'on'
repeatable'processes,'is'just'one'of'the'reasons'these'organisations choose'us'as'their'IT'specialists.
• Each'of'these'clients'can'be'referenced'and'our'specific'engagements'with'them'are'captured'as'Case'Studies.''
• These'clients'and'our'successful'engagements'are'the'reason'why'we'can'be'confident'we’re'the'right'choice'as'your'IT'
specialist.
CLIENTS
Banking,
Financial
&'Leasing
Travel'&'
Accomodation
ITC STARTUPS BPO OTHERS Retail'&'
Wholesale
eCommerce Insurance Healthcare

28. Our*Clients
Banking,
Financial
&'Leasing
Travel'&'
Accomodation
ITC STARTUPS BPO

29. OTHERS
Retail'&'
Wholesale
eCommerce Insurance Healthcare
Our*Clients

30. TECHNOLOGY
• Euro'IT'Group’s'unique'structure'means'we'have'access'to'every'IT'application'technology'you'may'
require,'from'traditional'technologies'in'the'Java'and'.Net space'to'leading'edge'technologies'driving'
innovation'in'areas'such'as'Big'Data,'business'intelligence'and'Mobile'.
• Maintaining'up'to'date'skills'in'such'a'wide'variety'of'technologies'is'practically'impossible'for'an'in'
house'team'and'traditional'vendors'are'constrained'by'their'structure'and'existing'teams.
• By'taking'a'refreshing'approach'to'our'organisations,'Euro'IT'Group'can'confidently'engage'you,'the'
client,'from'the'starting'point'of'being'technology'agnostic.'We'will'work'with'you'to'understand'your'
problems,'challenges'and'requirements'and'only'then'agree'what'technology'solution'is'right'for'you.
• The'technologies'on'the'right'reflect'our'current'skills,'but'we'will'constantly'enhance'this'to'take'
advantage'of'new'technologies'entering'the'market.

31. TECHNOLOGY

32. PARTNERSHIPS

33. Why*us
Proven'track'record'in'delivering'complex'projects
We'offer'a'well'balanced'blend'of'technology'skills,'domain'knowledge,'hands'on'experience,' effective'
methodologies,' complex'language'skills'and'a'great'passion'for'converting'business'ideas'into'
technical' products
Western'business'culture,'excellent'English'language'skills,'French,'German,'Italian,'Hungarian'
speaking'resources
Convenient'locations'and'favorable'time'zones
Proof'of'capability'based'on'low'cost'pilot'projects
Capability'for'fast'project'initiation'and'delivery
Well'defined'and'documented' software'development'process
High'focus'on'staff'trainings,'employee' satisfaction'and'an'effective' recruitment'process'– stable'
qualified'teams

34. CONSOLIDATED OUTSOURCING
Contact:'office@euroitgroup.com