One of the most common outsourced element is ADM, this is usually the first step in the outsourcing journey of most companies.Recently came across a report by Aberdeen Group, titled "Does Outsourcing Application Development, Maintenance Pay Off?".

The report re-iterates the popularity of the ADM outsourcing but also highlights that the customer satisfaction levels aren't very good...surprising since most companies have had more than a decade to get their act right?

Excerpts:

Satisfaction with the results of the outsourced work is another issue. Our survey found that 70% of respondents rated their satisfaction as no better than average. Satisfaction with data center computing and operations fared only slightly better while end-user computing fared slightly worse. Further, the top challenge with current outsourcing contracts "� cited by 45% of survey respondents "� is the outsourcer performance falling short of expectations. Another 25% cited user discontent with service levels.

Notable events that impact the ADM market:

• With information security a chief concern in many outsourcing deals, IBM strengthened its position with its recently announced $1.3 billion acquisition of Internet Security Systems, which will become part of IBM's Global Services group.
• Big Six provider Accenture recently announced the opening of its 10th delivery center in India to help serve its global customers as well as handle a growing demand within India.
• While U.S.-based providers have engaged foreign companies in partnerships and set up facilities in other countries, industry associations in India and The Philippines this month agreed to work together in promoting outsourcing in both countries.

Source: 1

Prashanth Rai