January - 2015 - issue > CXO View Point

OPD 3.0: Why the Future of Outsourcing Lies in Driving Business Outcomes

Sandeep Kalra

EVP and GM- Software, Product and Platforms division, -Symphony Teleca

Monday, January 12, 2015

Forward

The convergence of software, big data, social media, devices and cloud is causing unprecedented disruption across all industries. Corporate giants like Blockbuster, Borders and Kodak have often been cited as examples of this after crumbling in the face of competition from Netflix, Amazon and Shutterfly respectively.

In a world where there are more mobile phones than toothbrushes, where social media can bring down mega corporations and governments, software capabilities are no longer a nice-to-have; they are essential for survival and growth. According to Forrester, "Every company is becoming an ISV, and software is becoming the brand."

We believe the Outsourced Product Development (OPD) market is poised to grow exponentially in 2015 due to three megatrends:
1. Traditional companies are transforming into digital businesses
2. ISVs and technology companies are racing to make their products cloud, mobile and social media ready
3. New software, Internet of Things (IoT)-enabled businesses and infomediaries are disrupting value chains across industries

Most organizations (including traditional IT service providers) are lacking the necessary skills and mindset to enable complex, high velocity, mission critical programs. As a result, they will look for partners who can help deliver highly complex, bespoke product development programs. These require a product-centric approach and a broader portfolio of skills that include global agile development capabilities, user experience, integration and ability to design extremely secure and scalable architectures.