Competition heats up for outsourcing

Dell Computer's acquisition of Perot, the replacement of EDS by HP Enterprise Services, and TPI's outsourcing agreement with China point to changes ahead.

News this week might slip under the radar in terms of industry impacts as individual events may not have been game-changing, but they certainly indicate some significant shifts.

The first news this week was of Dell Computer's acquisition of Perot. While this certainly doesn't create a giant in the industry, it does show how smaller outsourcing providers as well as hardware vendors need to adjust to changed market conditions. Is this the first of many such moves, we have to wonder?

The second was the replacement of EDS by HP Enterprise Services. While this may sound unimportant, it is a significant move of dropping a long-term and well recognized brand in the outsourcing world in place of another well-known brand in terms of HP.

The third was the announcement by TPI of its agreement to aid the Chinese outsourcing industry. While China clearly has some steps to take to become a major player in the outsourcing services world, the connection with TPI, the largest and most trusted brand in the sourcing advisory market, is an indication of the seriousness with which China is likely to move. (Editor's note: As stated in his blogger profile, Michael is currently a partner at TPI.)

All in all, a bigger week than it may first appear in the sourcing industry.