TBM-like view from ITO Thought Leader

Thomas Young – ISG, ITO Thought Leader and Change Agent

– The RFP is dead

– Continued fragmentation of Technology Sourcing Market from one throat to choke to out-tasking

– Challenge is Service Integration over the next 3-5 years among out-tasking players

– Role of middleman must shift as emergent out-taskers are newbies to world of IT contracts and SLA’s

– Functional out-tasking Wave 1 (15-30% cost takeout) was labor arbitrage but now moving to Wave 2 labor automation (40-75% cost takeout)..
Indian outsourcers will only need 1/2 the people to deliver what they deliver today = significant bus model impact

– Impactful across all types of tech firms, including need for SW vendors to move from focus on SaaS and internal view to SaaS2, service as software

– Focus on the WHY business is done, not on the HOW

– Concept of Zero; understand how you can deliver what you deliver at no cost = autonomous service delivery

– Transparency on deals, shared risk/reward is the way; less procedural, less rigid

– CIOs risk disintermediation, most “rogue” behavior comes from CMO

– How to operate IT is table stakes; vertical savvy and empathy will win

– Bifurcate Run-The-Business and Change-The-Business; seperate the budgets so don’t rob Peter to pay Paul

Focused on TBM, Technology Business Management ("run IT like a business"). - 30+ years of experience, in providing IT strategy, process, application, RAMP, hardware, software, network, internet and cloud solutions to financial services, MRD and high technology companies from startup to F500. - 20+ published articles on the intersection of business and technology. - Startup advisor and mentor to a dozen startups, four of which were acquired and one of which is newly-launched (ITconnecter, a Crosswaves Ventures LLC company). - Specialties: IT Technology Business Management (TBM, aka "run IT like a business"), strategic partnerships, technology innovation, solutioning and program/project management (onshore, nearshore, offshore). Technology consulting focused on innovation, built around process, data and integration (cloud, social networking). We use I/TBM financial management best practices to help mid-size and large enterprises ensure they are meeting the needs of their business effectively and efficiently.

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Looking forward to your perspectives....