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  5. IBM Leverages Experience To 'Simplify' Outsourcing: Page 2 of 2
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IBM Leverages Experience To 'Simplify' Outsourcing: Page 2 of 2

Building on 25-plus years of experience working with more than 1,000 clients, IBM is officially unveiling a "pre-engineered technology services model" that it says can cut deployment time by more than 60 percent and slash costs by up to 50 percent. Big Blue's new services capabilities are based on a set of server, storage, networking and help desk services "assets" that integrate process, software, industry expertise and IBM research to create reusable building blocks. The company says that by b
March 24, 2011

Bill Martorelli, principal analyst, sourcing and vendor management, Forrester Research, thinks that IBM's new offering, as well as cloud service initiatives like HP's, are in line with the trends he's following in the outsourcing market: "I think it is broadly consistent with the trend in this market that is focusing on services that are more packaged, more bound up as building blocks as opposed to custom one-offs." This market has tended to be characterized by a lot of customization, he says, and this is an attempt to bring in more standardized, pre-engineered solutions.

There is growing commoditization in the outsourcing market, as well as an increase in the number of companies competing with IBM, says Martorelli. It's been a very competitive market that finally looks like it's growing again. He expects that the move to cloud services will become more prevalent and that IBM's latest announcement is a step in that direction.

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