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Mapping, Planning, and Benefiting from Global IT Innovation
Saugatuck Technology, Dec 2011, Pages: 14
The latest research from Saugatuck Technology shows that we are in the midst of an economic shift in innovation sourcing that is pushing more than half of IT providers to outsource and off-shore their core technological development. That shift will in turn force tremendous shifts in the cost of IT, changes in regional economies, and shifts in labor and technology costs for all parties concerned.
Saugatuck's newest report, “Mapping, Planning, and Benefiting from Global IT Innovation,” not only explains how shifts in innovation investment can affect provider profits and user adoption strategies. The report aggregates and analyzes a series of innovation mapping models and techniques to illustrate how centers of IT innovation are shifting toward new and emergent markets, how conditions in those markets will shape and re-shape IT innovation, and what the effects will be on IT providers and buyers alike.
Research highlights and insights from this report include the following:
- Traditional regional and country-specific centers of IT innovation, including the US, are losing influence and leadership;
- Some of that influence – but not all – is shifting toward Asian technology and manufacturing centers;
- By YE 2015, the regional economics of innovation will result in more than half of IT Master Brand providers outsourcing or off shoring the core of their technological development.
- By YE 2016, the shift toward new being acquired as Cloud-based, IT-as-a-service will accelerate a shift by most IT providers away from technological innovation as a core value, and toward innovation in technology us, application, and management as a core value.
- To maintain relevance in an increasingly global economy, IT providers and enterprise R&D groups alike need to broaden their “innovation portfolios” by establishing or expanding innovation investment in areas and locations where innovation is growing - and being rewarded.
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