One fine dawn, we read about a company that was born in 2009 and has a net worth of $18 billion while speculations were at $50 billion. Yes, you guessed it right, it is UBER. With 1000+ employees, no assets, no salaried drivers, Uber still manages to serve customers with on-time performance, assured pick-ups and lowest fares. Focused on consumers' wants, just-in-time service, high performance and commitment with the lowest or competitive cost, Uber has forced everyone to consider innovative business models demonstrating shared economy - connecting the producer and the consumer without middlemen and lowering the complexity and the cost of transactions - which I term as Uber-Economics.
Newer technology players are pushing new ways and means to provide IT breaking away from the traditional models. CIOs are on the brink of facing challenges on both the sides. On one side, the technology lifecycle is shrinking resulting in pressure on CIOs and businesses to invest more to REFRESH and on the other side, enterprises are in constant pursuit to increase their revenue and profits by increasing the customer base and cutting the cost of operations. Evidently, "IT" is one business enabler and is at the helm of affairs of an enterprise business whether it is procurement, operations, support, or admin functions. However, on the contrary, a look at the enterprises conceived in past 5 years shows us that they work with no captive IT Infrastructure. This means that, every enterprise today, wants to be out of the clutches of multiple vendor procurements, interoperability and technology lifecycle issues that involves huge sunk-in cost.
IT outsourcing (ITO) is heading for one of the major paradigm shift with cloud and subscription based licensing policy being the center of decision making for CIOs and businesses. Innovation in technology is affecting everyone. In my view, Ubereconomics for ITO may be termed as 'IT-as-a-Service' with end to end enterprise customer experience management. So has the time arrived for ITO service providers to relook their partnership models with hardware manufacturers and software giants to be able to go-to market basis shared economy? Will ITO service providers transform in a way similar to Uber? Will internet take over Private Wide Area Networks? Is the IT procurement model for enterprise under transition? And finally, are we ready for the change?
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