We are witnessing SaaS models disrupting the Software license business, utility computing disrupting the hardware business, but the IT services business has been the same old for the last couple of decades now… Yes that's true it has been 20+ years and vendors and customers alike are still discussing the onsite-offshore model, the dollar arbitrage etc.
I believe the IT services industry is ripe for some disruption along the same lines as the software and hardware businesses and soon...The outsourcing and offshoring demand still remains strong and more so in these troubled economic times, but something's got to change for this industry as
it moves forward.
One thought I have is that IT services will become pay per use. And some may argue that the current $/hr model is pay per use, but I mean something different. The unit of measure will not be an hour of service but really the deliverable from the service. So for example, the service card from an IT service provider will read-
· 500 function points delivered for $10,000
· 5 CRM apps with pre-defined functionality delivered for $250,000
· etc. etc...
Thoughts/comments, welcome….
1 comment:
Interesting thought. Most IT services companies and clients do not understand Function Point. Overall FP is good for very sophisticated customers. But I doubt if it well every reach wide spread industry acceptance amongst vendors and clients.
Bhalchaner
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