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Introduction

As enterprises start to move production workloads into hybrid cloud environments, long-term, single-supplier IT outsourcing contracts seem to be making a reappearance.

Highlights

  • This report considers the pros and cons of transformational outsourcing in the context of the transition to hybrid cloud.

Features and Benefits

  • Understand suppliers’ claims to free up resources for digital through transformational outsourcing.
  • Understand what’s prompting enterprises to consider single-supplier outsourcing in a multicloud world.

Key questions answered

  • How can enterprises ensure positive outcomes in their journey to hybrid cloud?
  • Why do IT outsourcers need to focus on application transformation as part of their cloud strategies?

Table of contents

Summary

  • In brief
  • Ovum view
  • Recommendations

The journey to cloud: Transformational outsourcing in a hybrid IT world

  • Transformation drives the return of long-term, single-supplier ITO contracts
  • IT outsourcers offset application migration to the cloud with the long-term management of the hybrid IT transformation

IT outsourcers seek single-supplier opportunities in cloud

  • Best-of-breed suppliers don't always work well together on cloud-based transformation projects
  • For the outsourcers, full-scope transformation services are a means to stave off revenue decline

Clear priorities and goals underpin successful transformational engagements

  • Outcome-based contracts encourage supplier commitment
  • Enterprises must set clear priorities and goals for successful transformational engagements

Appendix

  • Methodology
  • Further reading
  • Author

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