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Introduction

A combination of socio-economic and demographic factors and the imperative to offer an “unmatchable customer experience” are forcing enterprises to rethink their approach to application development.

Highlights

  • Enterprises are increasingly using software to deliver applications that improve consumer "stickiness", and this is driving demand for SPDS.

Features and Benefits

  • Understand the current sourcing and governance practices around the outsourced software product development space and the pros and cons of different approaches.
  • Gain a brief overview of the SPDS capabilities for the vendors who participated in this research.

Key questions answered

  • What are some of the must-have capabilities for SPDS vendors?
  • What effect does the use of outcome-based metrics have on various aspects of service quality?

Table of contents

Summary

  • Catalyst
  • Ovum view
  • Key messages

Recommendations

  • Recommendations for enterprises
  • Recommendations for vendors

Software defines the business and its ability to achieve desired outcomes

  • Vendors need to bring an outside-in view of technology
  • Vendor SPDS capabilities
  • Agile delivery capabilities are crucial
  • SPDS deal sizes and engagement complexity are increasing

SPDS lies at the core of technology-led innovation within the enterprise

  • Using outcome-based metrics ensures better performance against KPIs
  • Nearly 40% of survey respondents don’t think their provider’s offshore teams are proactive enough

Risk/reward models are the most common approaches to incentivizing innovation

  • Customers prefer to reward positive outcomes rather than punish failure to meet objectives

Appendix

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