Saugatuck Technology has an ongoing research and consulting practice focused on emerging trends in IT and Business Process Outsourcing.

Saugatuck research shows that companies are starting to take a much more strategic view of outsourcing, beyond the traditional tactical focus on cost cutting. Strategic sourcing has emerged as an integral part of defining and realizing competitive advantage for many firms. Where companies once gained such advantage by accumulating assets to cover as much of their industry value chain as possible, today's focus is on flexible and agile profit-making capabilities that change as markets change. And outsourcing plays a growing role in providing sourcing alternatives and new ways to execute a business strategy.

Saugatuck believes that more and more of the required adaptable business capability will be attained by subscribing to and buying standardized offerings from vendors and service providers, as opposed to buying customized offerings or building capabilities in-house. This standardization will occur at three levels: business process, software applications, and IT infrastructure. As a result, standardization will be one of the key drivers of outsourcing growth over the next five years.

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