Menu
Outsourcing heavyweights in for tough times

Outsourcing heavyweights in for tough times

Hard times are on the horizon for tier-one outsourcing vendors, according to Australian-based Hydrasight analyst John Brand.

Already outsourcing giants Unisys and CSC have announced Australian redundancies on the back of falling services revenues. Brand says many businesses are choosing tier-two providers because of natural market evolution.

“Tier-one vendors made the initial investment but tier-two vendors have been able to replicate that model fairly easily and for a much lower cost,” he says.

Brand says tier-two providers offer customers a good value proposition as long as they aren’t asked to do something different or out of the ordinary.

“That leaves tier-one vendors being continually forced to look further up the food chain. They are definitely going to struggle over the next few years.”

While tier-two outsourcers have reason to be optimistic, Brand suggests they should be careful not to overdo things.

“The challenge for tier-twos is to continue what they’re doing and manage to grow. It’s natural that some of them will become overly optimistic and make mistakes.”

In the meantime Brand believes tier-one vendors have to move back into the tier-two market.

“They have to start getting real. People haven’t exactly been overwhelmed with success stories from tier-one relationships. They need to push a point of difference — it could be stability or better service — but it must deliver the same returns as tier two.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments