{"id":1374,"date":"2012-05-11T10:48:00","date_gmt":"2012-05-11T10:48:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/isg-gartner_05111\/"},"modified":"2012-05-11T10:48:00","modified_gmt":"2012-05-11T10:48:00","slug":"isg-gartner_05111","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/isg-gartner_05111\/","title":{"rendered":"Bring it on! ISG takes aim at Gartner"},"content":{"rendered":"

\"\"<\/a>We’re awarding an HfS bravery medal to ISG analyst Stanton Jones for pointing a nuclear missile<\/a> at the credibility of Gartner’s recent\u00a0Magic Quadrant<\/a> for Managed Hosting. \u00a0Stanton doesn’t mince words as he declares:<\/p>\n

\n

“Did you know that of the companies listed on the Managed Hosting Magic Quadrant referenced above, less than half would be capable of supporting a transformational infrastructure sourcing initiative with a multinational company, or that only 10 percent could support the same for a global company?”<\/p>\n<\/blockquote>\n

Stanton then seizes the opportunity to pitch his firm’s own capabilities: “ISG is comfortable (and confident) in making this statement because we\u2019re on the ground every day with both buyers and sellers of IT services. This unique position gives us unprecedented insight into what suppliers are really capable of delivering to clients \u2014 clients that trust us to help them vet providers in a fair, transparent way to make sure the vendor will help them solve their ultimate business problem.”<\/p>\n

While I have no doubt that Stanton’s knowledge of providers’ IT sourcing\u00a0capabilities\u00a0is top-notch (I have always been impressed by the caliber and culture ISG’s people), I think we need to look at this accusation in a broader context:<\/p>\n

1) ISG lives in a world where it’s all about outsourcing – how about the other 72% of enterprises?<\/strong>\u00a0\u00a0Our recent studies show that only 28% of large enterprise rely predominantly on an outsourced model for IT infrastructure. \u00a0While Stanton correctly states that \u00a0\u201dless than half of these providers would be capable of transformational infrastructure sourcing initiatives\u201d, he conveniently ignores that fact that most of Gartner\u2019s clients \u2013 and the majority of large enterprises, probably don\u2019t care too much about these capabilities. \u00a0They may just want a quick no-nonsense glance at managed hosting providers. \u00a0I\u2019m sure Gartner\u2019s clients who do<\/em> care about “transformative sourcing cababilities” would call them up to find out more.<\/p>\n

2) ISG makes the vast\u00a0majority\u00a0of its income\u00a0facilitating\u00a0and negotiating outsourcing transactions – doesn’t this bias its research?<\/strong>\u00a0\u00a0\u00a0I can speak from personal experience that it\u2019s really tough trying to produce \u201cunbiased\u201d research when working for a company that makes most of its money from clients undertaking outsourcing engagements. \u00a0The bottom-line is your firm is vested in the success of outsourcing, and your research will always be pressured to advocate the benefits of outsourcing. \u00a0At the end of the day, the consultants want to wave research in front of their clients that supports the case for doing an outsourcing transaction, because that\u2019s how they get paid. \u00a0However, for those companies who\u2019ve already made the decision to outsource, or are renegotiating existing outsourcing contracts, ISG\u2019s research is likely to be highly pertinent and relevant.<\/p>\n

3) All quality consultants conduct good research and thought-leadership, but they’re not trying to badge themselves as research companies.<\/strong> \u00a0In sourcing, some of the best research comes from the likes of PwC, KPMG, AT Kearney, Deloitte etc – in fact, we even showcase some of it at our BPO Resource Center<\/a>. \u00a0However, they do research to\u00a0enhance\u00a0their eminence and consultative\u00a0credibility, and they make every effort to make it widely available and accessible to\u00a0enterprise\u00a0decision makers. \u00a0I don’t think I have ever read a detailed piece of ISG (or TPI) research in my entire career beyond their quarterly index calls. \u00a0I am sure it’s great, but it’s not easily accessible or widely available to the industry at large. \u00a0If they\u00a0truly\u00a0want to become a research firm, then let’s have a gander at some and we can all form our own opinions.<\/p>\n

The Bottom-line: Outsourcing specialists need to base their business models more broadly than solely on outsourcing if they want to take on the traditional analysts<\/span><\/p>\n

Love them or loath them, Gartner serves the vast majority of IT buyers, whether or not they outsource. \u00a0Moreover, Gartner is\u00a0predominantly<\/em>\u00a0a research firm and IT strategy advisor, who I haven’t ever seen\u00a0facilitate\u00a0an IT outsourcing deal (I’ve seen them dabble in it in the past, but they never really got anywhere). \u00a0 ISG is a great outsourcing consultant, and has consistently been the industry-leader for\u00a0facilitating\u00a0IT outsourcing transactions for the last couple of decades.<\/p>\n

\"\"<\/p>\n

Stanton Jones is Analyst, Emerging Technology at ISG<\/p>\n<\/div>\n

While Gartner could clearly do a better job researching the sourcing transformational\u00a0capabilities\u00a0of providers, ISG could similarly do a better job producing research for the 72% of\u00a0enterprises\u00a0who haven’t<\/em> done a lot of IT outsourcing. \u00a0If I’m a CIO and need some unbiased validation of my overarching IT strategy, I’ll be likely to call Gartner (among others) for an independent viewpoint. \u00a0If I was doing an outsourcing deal and needed specific advice and data around how to do my transaction and develop my shortlist, ISG will surely be on my list of experts to call.<\/p>\n

As we have painfully laid out here time and time again… it’s not all about outsourcing<\/a><\/em>!<\/p>\n","protected":false},"excerpt":{"rendered":"

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