Still, survey respondents expressed much concern over the potential backlash to their increased use of outsourcing. Eight-five percent of IT users and 81% of IT providers surveyed said they're concerned that legislation or political pressure might prevent them from taking advantage of the wage arbitrage opportunities associated with offshore outsourcing. In addition, 84% of users and 82% of providers say they're worried about employee anxiety over job losses associated with outsourcing. Of particular concern to some employers, according to the analysis, is the potential for employees to purposefully undermine offshore relationships.
The risk of global instability is another significant concern, with 79% of buyer participants and 69% of providers. Negative publicity is also an issue, particularly with providers--72% of whom were somewhat or very concerned about their reputation for taking U.S. jobs overseas.
"It is clear that senior management wants to take advantage of the benefits that outsourcing can offer as part of a sound sourcing strategy but they are engaged in a balancing act to ensure that they don't get locked into deals that might be threatened by new legislation, boycotts or employee sabotage," DiamondCluster's analysis states. "We believe the response to these risks will include building more flexibility into shorter-term deals, outsourcing more to onshore service providers or to take a wait-and-see attitude. One thing is certain, however. Decision-makers understand that managing the backlash amongst their various stakeholders is a serious issue for any company that's outsourcing today."
According to DiamondCluster, the shift in perception about the risks of outsourcing is additional proof of a maturing industry. In its first outsourcing study two years ago, respondents identified uncertain financial payback and the quality of the outsourcer's work as key risks. Today, IT users say they're are more concerned about ensuring the effectiveness of their outsourcing investments as well as managing remote resources.
"As jobs and entire functions ebb further away from management's direct control," DiamondCluster's analysis says, "executives are becoming more aware of the inherent risks and complexities of managing outsourcing relationships."
To realize the benefits of cloud-native software, an application must actually be cloud-native—designed to run in the cloud, interacting with disaggregated cloud services, fully manageable as code—to deliver the expected benefits.
By combining resources and expertise, the AI-Enabled ICT Workforce Consortium will offer a blueprint for how industries can adapt to an AI-dominated future.
IT leaders should heed the guidance of cybersecurity insurance providers who think businesses should prioritize security education, incident preparedness, regular internal audits, and ongoing vulnerability scanning and patching.
