Effect of Globalization on IT Service Providers in Europe

Effect of Globalization on IT Service Providers in Europe Opportunities and challenges presented by Globalization: IT Service providers in Continental Europe EXECUTIVE SUMMARY Enterprises within Europe are increasingly trying to seek the advantages of global sourcing. Unlike enterprises in U.S. or U.K., continental European countries have historically been reluctant to engage with offshore providers. The reasons were far stretched, ranging from political sensitivity, labor laws, cultural compatibility and language requirements. Globalization, however, is creating new avenues that European companies can not ignore. A recent report by Gartner shows the potential IT Offshoring market to be in the range of about $ 200 to 240 Billion. The market is expected to register double digit growth for years to come. The current offshore spending by firms amounts to just $17 Billion worldwide. This clearly shows a big gap, a huge market potential which is yet to be exploited. The huge demand has also led to emergence and growth of several new players in the field of IT Outsourcing/ Offshoring services, this is leading to ever increasing competition in the marketplace. In order to cope up with this increased competition and to provide better services, these service providers are increasingly adopting Global delivery models. By selecting an advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In Europe, nearshore models still dominate the market. But these models are continuously being updated, with more and more providers setting up Offshore Development Centers in locations like India. A framework for building an optimal combination of onsite, nearshore, and offshore delivery capabilities is provided by Capgeminis Rightshore ® model. A recent Gartner report has suggested that, the current US economic slowdown is expected to lead buyers of IT services to consider increasing the percentage of their labor in offshore locations. India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service providers. INTRODUCTION: EUROPEAN IT MARKET The European market remains a highly complex and competitive market with a large number of providers. Mergers and acquisitions will continue but will be balanced by new market entrants Outsourcing adoption in Europe is increasing for both infrastructure and applications; the widespread lack of well defined sourcing strategies among buyers and the realities of ever-changing business requirements will generate frequent deal negotiations and renegotiations Global delivery and utility services are irreversible trends evolving at different speeds among various European countries. The European multi country, multi language/culture composition increases the evolutionary complexity of these trends Selective outsourcing with multiple providers will remain the preferred model of engagement for European buyers. Governance and end-to-end integration/management of different providers/solutions are the most challenging aspects of it ITO market maturity varies: UK is the most matured IT market in Europe. The other European markets are maturing at different speeds. An acceleration in ITO adoption is now apparent in countries such as France and Germany A focus on achieving service delivery excellence and the best value/quality balance is increasingly driving European organizations (especially those beyond the first generation deal) to consider selecting multiple providers for an outsourcing contract. For example, in the IT Telecom sector, the most common division is by service tower, with customers opting to choose different providers for their network, desktop, data center and application competencies. At the moment, however, providers tend to join forces in an opportunistic manner, as a response to customer demands. This is the cause behind the ever-changing composition of the providers teams; as a consequence, consolidating best practices to manage IT service spin offs between different providers in an effort to guarantee end-to-end service delivery excellence remains challenging. As the number of providers engaged is set to increase, this challenge is likely to intensify. It will also be driven by other market characteristics, which include a persistent tactical use of outsourcing by European customers, insufficient process maturity, and lack of clarity in the definition of roles and responsibilities. As we look at global delivery, it is fair to say that there are two major misconceptions that still exist among the European market: 1) Global delivery is often considered as a synonym of offshore, and 2) IT services delivered through global delivery capabilities are application services. In reality, in the past few years, the European market has witnessed a considerable expansion in terms of both geographical location options (in areas such as Eastern Europe or North Africa, for example) and portfolio of services offered (now including, for example, help desk and remote infrastructure management services). Global delivery and offshore, however, remain the key deal characteristics that need to be treated with extra care in many European geographies, and as a consequence, many deals remain confidential. Traditional providers investment will be directed toward enhancing existing capabilities (especially near shore in Eastern Europe) and ensuring process solidity. Offshore providers inv estment on the other side will be centered on creating front-end capabilities with a focus on specific country and vertical-oriented competencies. While these global delivery models mature and are refined/ optimized, customers satisfaction will remain a challenge. KEY TRENDS SHAPING IT OUTSOURCING MARKET IN EUROPE TRENDS CHARACTERISTICS Selective Outsourcing With Multiple Providers * Embraced by majority of European companies * Objectives: IT excellence and cost optimization * Integration and governance challenges Global Sourcing and Global Delivery Models * Near shore proximity key for European market * Expanding portfolio of outsourcing services * Key area of investment for providers and buyers IT Utility * Industrialization is accelerating * Convergence of IT utility and global delivery * Key drivers: flexibility, efficiency, optimized cost, speed Aggressive ESP Competitive Landscape * National, global and offshore ESPs converging * Mergers, acquisitions and divestitures to continue * Providers are implementing new business models * New offshore market entrants Application Outsourcing to Grow * Drivers: portfolio rationalization, legacy modernization * Global delivery will gain acceptance * Multitude of providers competing Source: Gartner The U.K., Netherlands, Sweden and Finland are examples of countries more attracted by the global delivery model. However, in the meantime, the impact of global competition has started to drive countries such as Germany and France to consider global delivery as a viable option to be considered strategically, rather than when all other options have been exhausted. Despite a slower gestation and the fact that a complete infrastructure utility (IU) offering has not yet been developed, the IU model is continuing to attract new offerings and/or new providers. In the meantime, European customers, attracted by the idea of being able to access IT services in a flexible way, remain cautious as they expect further clarity on issues such as unit definition, pricing mechanisms, integration to existing systems, and security portability In the near future, we expect that the IU for ERP platforms will remain the most common battleground for providers; other providers are expected to instead mask their IU offering behind a package that includes product and support services. The concept of software as a service (SaaS) or ready-to-use applications will continue to generate lot of interest. Expectations for a solid delivery and specific functionalities will drive providers to specialize their offerings. Finally, gains in terms of process efficiency will be seen as crucial to deliver enhanced competitiveness, flexibility, agility and cost optimization. GLOBAL TRENDS: IT OUTSOURCING and OFFSHORING MARKET IT Outsourcing market is showing an average growth of 9% p.a. IT Outsourcing Worldwide forecast (Million $) Source : Gartner Dataquest In terms of volume, North America continues to be the leader in IT outsourcing. Latin America and APAC have shown good growth Europe has fast emerged as a big IT outsourcer Global offshore spending is continuing to register double digit growth. Worldwide Offshore IT Services Spending by Importing Region (million $) Source: Gartner Dataquest, 2004 and Worldwide and U.S. Offshore IT Services 2006-2010 Forecast In terms of volume, the North America continues to be the leader in IT offshoring. Once averse to the idea of outsourcing, Europe is now steadily adopting an IT offshore model to boost the economy Global offshore spending is projected to increase to 29400 $ Million in 2010 The graph on the next page shows the potential market for various types of sourcing options. This clearly depicts that he IT and Business Process offshoring market has grown at a tremendous rate over the past 7 year and the market provides a huge potential which is yet to be exploited. IT and BPO market Source Gartner, Dataquest, Aberdeen Group, McKinsey, Evalueserve, Infosys, IDC and Nasscom strategic review 2008 Currently we are not even exploiting 10% of the potential market size ( IT services off shoring just at $17 Billion, whereas market potential is about $200-240 Billion *) According to a new research by Gartner, the market is likely to grow further after the financial slowdown, as firms will try aggressively to reduce costs and improve efficiency Different Sourcing Models In-sourcing / Shared Services: Sourcing from internal sources or from an affiliated firm in the home economy Onshore Outsourcing: Sourcing from a non-affiliated firm in the home economy Captive Offshoring: Sourcing from an affiliated firm located abroad Offshore Outsourcing: Sourcing from a non-affiliated firm located abroad REGIONAL DYNAMICS ACROSS EUROPE The following section will describe the regional ITO trends and local dynamics across different European locations. UK and IRELAND 2005: â‚ ¬17.2B 2010: â‚ ¬25.7B 2005-2010 CAGR: 8.3% ITO drivers: Improve IT quality for end users, speed/flexibility, access to technical skills, cost reduction Inhibitors: Loss of control, lack of trust, security/privacy, IP Key trends: †¢ Most mature market in Europe with wider number of mega deals (public sector) †¢ Deal sophistication, including government. Increasing interest in new pricing schemes, business enhancement and shared services †¢ More selective sourcing and global delivery †¢ Areas such as Scotland and Ireland feeling pressure of Indian and Eastern European operations †¢ Wide potential for application engagements to mature from project engagements into outsourcing based engagements Despite being the largest and most mature market in Europe, the U.K. remains also one of the fast-growing ones. Here organizations seem to have moved away from the equation of outsourcing = cost reduction. While cost remains a key component, other objectives seem more important, such as improving IT service delivery, gaining specific skills, especially for application outsourcing deals, and becoming a more flexible organization. (See Appendix F) Inhibitions remain related to a general lack of trust in the ability to join forces with the providers to manage security, control over IT operations and IP. The U.K. market is characterized by a large number of mega deals, especially in the public sector. These outsourcing deals often include initiatives that have classically been carried out through project engagements and now are increasingly being performed in the initial phases of an IT outsourcing or BPO deal. This change reflects the growing desire of customers for a tighter link between investment and results (for which the outsourcer is responsible during the duration of the contract) and the important shift in role for the internal IT department. Rather than focusing on assembling and managing all of the necessary skills and capabilities to meet a certain objective, IT organizations, in this scenario, are responsible for coordinating the objectives of the Business Unit and the internal and external providers engaged to support them. Often infrastructure outsourcing is at the core of these complex relationships. At the same time, the U.K. is also the largest market in terms of adoption of IT services delivered through a network of global delivery capabilities (which include nearshore and offshore locations). From this point of view, areas that used to be considered as low cost for outsourcing operations (Scotland and Ireland) continue to feel the pressure of Indian and Eastern European capabilities. Finally, organizations that have engaged for a long period of time in project-based application deals are planning to elevate them into more-strategic, long-term application management engagements. This will allow them to gain a longer-term commitment from the service provider and the relevant support to re-evaluate their application portfolio. NORDIC COUNTRIES 2005: â‚ ¬5.2B 2010: â‚ ¬7.6B 2005-2010 CAGR: 8.2% Drivers: Cost reduction, access to technical skills (especially in application outsourcing engagements), support in global operations, focus on core business Inhibitors: Loss of control, security/privacy, lack of trust Key trends: †¢ Nordic market generally mature. Many large deals are in second or third generation. Some likely to evolve toward multi sourcing †¢ Large corporations see global delivery as a viable option. SMBs see nearshore option more favorably †¢ Consolidation drives specialization by geography, vertical market or horizontal service †¢ Increased competition between regional and global ESPs †¢ Cultural affinity seen as crucial to guarantee deal success/longevity Each of the four country markets that compose the Nordic region has its own distinct characteristics and buying behaviors in IT services. However, if we look at the forecast growth between 2005 and 2010, we expect the region to grow at a similar speed (despite size differences) of about 8%. Denmark: Sometimes seen as the entry point for the global service providers to the Nordics. Expected growth is from â‚ ¬856 million in 2005 to â‚ ¬1.2 billion in 2010 (CAGR of 7.8%). Finland: Unique in the Nordic region as buyers focus much more on business value of an outsourcing deal rather than just cost. Expected growth is from â‚ ¬1 billion in 2005 to â‚ ¬1.45 billion in 2010 (CAGR of 7.5%) Norway: Remains the smallest outsourcing market in the region. Expected growth is from â‚ ¬1.2 billion in 2005 to â‚ ¬1.8 billion in 2010 (CAGR of 8.1%) Sweden: Largest market and very cost-competitive. Probably the Nordic country targeted most by offshore providers currently. Expected growth is from â‚ ¬2 billion in 2005 to â‚ ¬3.1 billion in 2010 (CGR of 8.7%) From a client perspective, the Nordic region market is generally mature, with many large corporations in second- or third-generation outsourcing deals. Global delivery is widely accepted as an option. Competition between regional providers and global providers is increasing; this was initiated by the inability of local providers to support the operations of key Nordic organizations around the globe. However, recent acquisitions and divestitures by both local and international providers prove that the market has still got room for further maturation and consolidation. NETHERLANDS 2005: â‚ ¬3.4B 2010:â‚ ¬5B 2005-2010 CAGR: 8% Drivers: Cost reduction above all, agility/flexibility, improving service to end users Inhibitors: Loss of IP and control, security/privacy, high cost Key trends: Market shows mixed signs of maturity (organizations accept global delivery) and immaturity (sourcing strategy is often neglected) Market split between large global corporations and wide portion of SMBs Increased competition for local/national champions Application under scrutiny for externalization The market in the Netherlands is one of the more modern IT outsourcing environments in Europe, closely following the U.K. in many trends. A focus on global delivery and the expansion of many deals into the application or business process layer points to more market maturity. This maturity is driven primarily by the relatively high proportion of large (and often multinational) enterprises headquartered in the Netherlands and competing in major markets such as financial services. But there are some contradictory characteristics that point to an immature market (cost cutting is by far the major driver, and sourcing strategy is often neglected); this, as a consequence, often inhibits the potential success of outsourcing initiatives. The market remains very challenging and competitive. This is due to the high presence of small and midsize businesses (SMBs), which traditionally tend to consider outsourcing as a threat more than an opportunity and require a higher level of customization, which tests the profitability model of service providers. Competition remains strong for national champions as global and offshore providers continue to target opportunities in the country. Increasingly, application outsourcing opportunities are emerging as organizations look at portfolio rationalization, legacy system transformation, and custom application software development initiatives and accessing application utility solutions. FRANCE 2005: â‚ ¬6.6B 2010: â‚ ¬10B CAGR: 8.4 % Drivers: Cost reduction, refocus internal IT, speed/flexibility Inhibitors: Loss of control, lack of trust, security/privacy Key trends: Beyond its reliance on staff augmentation, Frances outsourcing market shows opportunities in all facets of outsourcing: infrastructure, applications and BPO Selective outsourcing has gained acceptance, and organizations show cautious interest in global service delivery National champions remain under competitive pressure from the global and multinational providers France has long been considered behind in the outsourcing trend. Now, however, the French outsourcing market is consolidating and growing, while the long-standing reliance on staff augmentation is losing strength. The major driver that will support a CAGR of over 8% between 2005 and 2010 is the need for French organizations to reduce cost and enhance their level of competitiveness in the market by refocusing their internal IT skills on more-strategic tasks while gaining flexibility. On the other side, it is interesting to see that challenges related to HR management have lost strength, compared with the traditional fears related to loss of control and security and lack of trust. Large organizations have recently moved toward the adoption of selective outsourcing with multiple providers. This model has gained acceptance as organizations look at maximizing the balance between cost and service delivery excellence. There is also a new focus on application outsourcing. This trend is important not only because it signals an acceleration in the growth of outsourcing in France overall, but because it signals a major change in the way French organizations use different kinds of IT services. Increase in application outsourcing deals also touches on one of the major taboos of IT services in France: offshore outsourcing. As such, although offshore remains a word to be used with extra care in the French market, many organizations would consider that access to global delivery models is an appealing part of outsourcing, especially when delivered by traditional players. In this case, North Africa (Morocco, for example) is emerging as a viable near shore location. National champions, the providers that focus on a specific region or country, remain under competitive pressure from the global and multinational providers. GERMANY 2005: â‚ ¬10.6B 2010: â‚ ¬16B 2005-2010 CAGR: 8.6% Drivers: Cost reduction above all, focus on core business, refocus internal IT Inhibitors: Security/privacy, lack of trust, loss of control Key trends: Global economic pressures have forced many organizations to look at outsourcing as a viable option In the short term, objectives such as flexibility and agility are secondary Pressure to divest internal IT departments or internal shared service organizations remains strong Global delivery gaining ground especially toward Eastern Europe Intensifying competition between strong German players and global ones Legacy system modernization will remain a key objective The German market is â€Å"federated† in several ways: government responsibilities, industrial centers, buying centers within enterprises, and management structures in place. All of this makes doing business in Germany (and negotiating significant IT service deals) unique. Decision processes tend to be longer, require more consensus building and often entail more travel than in other parts of Europe. For a long time, the majority of German organizations have considered IT operations as a key component to maintain or enhance their level of competitiveness in the market. This has, as a consequence, slowed the outsourcing growth. In the past two years, however, economic pressures have forced many organizations to look at outsourcing tactically to cut cost. While in the short term, achieving flexibility is a secondary objective, organizations look at outsourcing as a way to refocus their internal capabilities while focusing on their core business. The traditional inhibitors around security, trust and loss of control apply. While non-German external service providers (ESPs) still find it difficult to position themselves in Germany (exceptions are IBM Germany, which established itself early on as a â€Å"German† ESP, and HP, based on its early SAP hosting business and penetration as a technology provider), German providers maintain strong domestic positions and are starting to focus on expanding their international presence (through T-Systems). In the short term, German organizations will still consider selling their own IT capabilities, while global providers will see these as viable targets to build capabilities as long as they provide financial support through a long-term outsourcing deal. Finally, beyond potential healthy growth for ERP application outsourcing initiatives (especially SAP), as many organizations look at legacy system modernization, it is likely that many projects will evolve and deploy model to include the long-term management of applications. EASTERN EUROPE 2005: â‚ ¬1.1B 2010: â‚ ¬1.6B 2005-2010 CAGR: 7.9% Drivers: Acquisitions made by large Western European organizations, increased competition, need to revamp obsolete IT environments (leap-frog) Inhibitors: Low expertise to manage OS deals, high cost of OS, loss of control Key trends: Slow internal consumption of outsourcing Key nearshore delivery hub for providers supporting operations of European organizations Local Eastern European service providers will remain target for acquisitions Long-term growth will be supported by increasing competition, acquisitions made by Western companies and the penetration of Western ESPs in the region The region has become a strong global delivery hub Recent admission to the European Union has transformed countries such as Poland, Romania and the Czech Republic into attractive locations to establish global delivery capabilities designed to deliver IT services to European or global customers. Eastern Europe has been identified as an ideal region to establish a service delivery hub by U.S.-based providers (IBM, Accenture and EDS), European ones (Atos Origin, Capgemini, T-Systems, SIS and ST) and offshore ones (Ness, TCS, Satyam, Infosys and Wipro). When necessary, providers are openly seeking acquisitions to gain scale; it is the case for SIS, which acquired ELAS, HT Computers in Slovakia, and Ibis-Sys in Serbia (February 2005). Others, like Austrian-based ST, are pursuing a strategy of becoming the provider of choice in Eastern Europe through a combination of organic development and local acquisitions. ST acquired Computacenter Austria to strengthen its product resale capabilities. Although internal consumption of outsourcing has been slow, it is expected to grow rapidly, thanks to increasing competition driven by the fact that private-sector companies and public-sector organizations are now focusing on bringing their systems into line with market standards. This is leading to some â€Å"leapfrogging† effects — the IT utility approach, for example, holds significant appeal without posing the same transition challenges as elsewhere — but because these markets are fairly immature, there is still a strong focus on products and product support services rather than more-sophisticated IT service engagements. Italy and Spain are two other major countries with an expected ITO market size of about 5 Billion $ each by the year 2010. GLOBAL DELIVERY MODEL GDM is a unique approach to outsourcing and off shoring, which offers the best of both worlds by blending onsite, onshore and offshore resources and locations. By using a far-reaching network of onsite, onshore, and offshore resources, GDM aims to cuts across geographies to access the right resources, in the right place, at the right cost. By selecting the most advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In this section we would discuss in detail, the key drivers to a successful GDM. Source: Capgemini, 2008 KEY DRIVERS OF A SUCCESSFUL GDM STRONG PROCESSES Strong processes are the backbone of a successful Global Delivery Model. There is a strong need for detailed, documented and time-tested processes for all the activities and interfaces. Strong quality and project management processes ensure delivery excellence. World class processes for knowledge management and sharing resources encourage improved learning among teams. Processes for managing talent ensure that the projects get the best and most motivated people. Strong processes for interaction and communication within team make it possible for globally distributed groups to interface and collaborate in an effective manner while delivering excellence on a continuous basis. On the other hand, processes, while strong, should leave ample space for creativity and flexibility. It is only then that the Global Delivery Model (GDM) can create far more value than the traditional sourcing models. Here is what it will translate into: Quicker, seamless transitions, and early project ownership Optimum onsite/ offshore mixes through intelligent allocation of the available resources High degree of predictability through processes, sharing and reuse A strong relationship approach to ensure continuity and business focus Sharing of best practices and tools across the enterprise Depth and quality of resources, continuously trained and retrained to suit project needs Adherence to SLA based pricing models to ensure good Return on Investment (ROI) and drive customer satisfaction PROCESS ARCHITECTURE Companies rely on processes to consistently deliver high quality solutions while executing a number of engagements from multiple locations. According to the policies adopted by a leading IT services provider: values, vision and policies should form the first level of the three-tiered process architecture. These are then implemented through process execution at the next level. These processes are defined with clear ownership and clearly defined roles and responsibilities. Quality System Documentation Quality System Documentation defines clearly all the processes that should be put into place. These documents provide the engineers and consultations with a vast repository of detailed procedures, templates, standards, guidelines and checklists. The comprehensiveness of these documents supports all tasks from higher-level information abstraction and definition to tasks such as coding and documentation. This is crucial to assure clients with the delivery of high quality and predictable IT solutions that meet their business needs. These documents should also be monitored and updated regularly. Knowledge Sharing Employees are given a forum like a website portal, to share knowledge gained from their experience at the organization. It is meant to be a central repository of the knowledge that can be tapped by peers and as sometimes external clients as well. The collection of documents on this portal is reviewed and classified into different areas: Software development life-cycle activities such as requirements specification, design, build and testing documentation. Software-related topics such as tools and quality documentation. Topics of general or operational interest such as travel or HR policies, etc. Process Assets This is a repository to facilitate sharing and giving out of engagement learning across the organization. The user has the facility to submit to the repository, retrieve from the repository and obtain information on the status of the repository. A process asset can be any information ranging from an engagement, which can be re-used by future engagements. Typically these include project plans, configuration management plans, requirements documents, standards, checklists, design documents, test plans, causal analysis reports and utilities used in the engagement, etc. Process Database The Process Database is a software engineering database to study the processes at the organization with respect to productivity and quality. More specifically, its purpose areas are as follows: To aid estimation of effort and project defects To get the productivity and quality data on different types of projects To aid in creating of a process capability baseline Process Capability Baseline (PCB) Process Capability baseline is used to specify, what the performance of the process is, i.e. what a project can expect when following the process. This estimation is done based on the past data. The performance factors of the process are Effect of Globalization on IT Service Providers in Europe Effect of Globalization on IT Service Providers in Europe Opportunities and challenges presented by Globalization: IT Service providers in Continental Europe EXECUTIVE SUMMARY Enterprises within Europe are increasingly trying to seek the advantages of global sourcing. Unlike enterprises in U.S. or U.K., continental European countries have historically been reluctant to engage with offshore providers. The reasons were far stretched, ranging from political sensitivity, labor laws, cultural compatibility and language requirements. Globalization, however, is creating new avenues that European companies can not ignore. A recent report by Gartner shows the potential IT Offshoring market to be in the range of about $ 200 to 240 Billion. The market is expected to register double digit growth for years to come. The current offshore spending by firms amounts to just $17 Billion worldwide. This clearly shows a big gap, a huge market potential which is yet to be exploited. The huge demand has also led to emergence and growth of several new players in the field of IT Outsourcing/ Offshoring services, this is leading to ever increasing competition in the marketplace. In order to cope up with this increased competition and to provide better services, these service providers are increasingly adopting Global delivery models. By selecting an advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In Europe, nearshore models still dominate the market. But these models are continuously being updated, with more and more providers setting up Offshore Development Centers in locations like India. A framework for building an optimal combination of onsite, nearshore, and offshore delivery capabilities is provided by Capgeminis Rightshore ® model. A recent Gartner report has suggested that, the current US economic slowdown is expected to lead buyers of IT services to consider increasing the percentage of their labor in offshore locations. India will remain the dominant location for IT offshore services for North American and European buyers as a result of its scale, quality of resources and strong presence of local and traditional service providers. INTRODUCTION: EUROPEAN IT MARKET The European market remains a highly complex and competitive market with a large number of providers. Mergers and acquisitions will continue but will be balanced by new market entrants Outsourcing adoption in Europe is increasing for both infrastructure and applications; the widespread lack of well defined sourcing strategies among buyers and the realities of ever-changing business requirements will generate frequent deal negotiations and renegotiations Global delivery and utility services are irreversible trends evolving at different speeds among various European countries. The European multi country, multi language/culture composition increases the evolutionary complexity of these trends Selective outsourcing with multiple providers will remain the preferred model of engagement for European buyers. Governance and end-to-end integration/management of different providers/solutions are the most challenging aspects of it ITO market maturity varies: UK is the most matured IT market in Europe. The other European markets are maturing at different speeds. An acceleration in ITO adoption is now apparent in countries such as France and Germany A focus on achieving service delivery excellence and the best value/quality balance is increasingly driving European organizations (especially those beyond the first generation deal) to consider selecting multiple providers for an outsourcing contract. For example, in the IT Telecom sector, the most common division is by service tower, with customers opting to choose different providers for their network, desktop, data center and application competencies. At the moment, however, providers tend to join forces in an opportunistic manner, as a response to customer demands. This is the cause behind the ever-changing composition of the providers teams; as a consequence, consolidating best practices to manage IT service spin offs between different providers in an effort to guarantee end-to-end service delivery excellence remains challenging. As the number of providers engaged is set to increase, this challenge is likely to intensify. It will also be driven by other market characteristics, which include a persistent tactical use of outsourcing by European customers, insufficient process maturity, and lack of clarity in the definition of roles and responsibilities. As we look at global delivery, it is fair to say that there are two major misconceptions that still exist among the European market: 1) Global delivery is often considered as a synonym of offshore, and 2) IT services delivered through global delivery capabilities are application services. In reality, in the past few years, the European market has witnessed a considerable expansion in terms of both geographical location options (in areas such as Eastern Europe or North Africa, for example) and portfolio of services offered (now including, for example, help desk and remote infrastructure management services). Global delivery and offshore, however, remain the key deal characteristics that need to be treated with extra care in many European geographies, and as a consequence, many deals remain confidential. Traditional providers investment will be directed toward enhancing existing capabilities (especially near shore in Eastern Europe) and ensuring process solidity. Offshore providers inv estment on the other side will be centered on creating front-end capabilities with a focus on specific country and vertical-oriented competencies. While these global delivery models mature and are refined/ optimized, customers satisfaction will remain a challenge. KEY TRENDS SHAPING IT OUTSOURCING MARKET IN EUROPE TRENDS CHARACTERISTICS Selective Outsourcing With Multiple Providers * Embraced by majority of European companies * Objectives: IT excellence and cost optimization * Integration and governance challenges Global Sourcing and Global Delivery Models * Near shore proximity key for European market * Expanding portfolio of outsourcing services * Key area of investment for providers and buyers IT Utility * Industrialization is accelerating * Convergence of IT utility and global delivery * Key drivers: flexibility, efficiency, optimized cost, speed Aggressive ESP Competitive Landscape * National, global and offshore ESPs converging * Mergers, acquisitions and divestitures to continue * Providers are implementing new business models * New offshore market entrants Application Outsourcing to Grow * Drivers: portfolio rationalization, legacy modernization * Global delivery will gain acceptance * Multitude of providers competing Source: Gartner The U.K., Netherlands, Sweden and Finland are examples of countries more attracted by the global delivery model. However, in the meantime, the impact of global competition has started to drive countries such as Germany and France to consider global delivery as a viable option to be considered strategically, rather than when all other options have been exhausted. Despite a slower gestation and the fact that a complete infrastructure utility (IU) offering has not yet been developed, the IU model is continuing to attract new offerings and/or new providers. In the meantime, European customers, attracted by the idea of being able to access IT services in a flexible way, remain cautious as they expect further clarity on issues such as unit definition, pricing mechanisms, integration to existing systems, and security portability In the near future, we expect that the IU for ERP platforms will remain the most common battleground for providers; other providers are expected to instead mask their IU offering behind a package that includes product and support services. The concept of software as a service (SaaS) or ready-to-use applications will continue to generate lot of interest. Expectations for a solid delivery and specific functionalities will drive providers to specialize their offerings. Finally, gains in terms of process efficiency will be seen as crucial to deliver enhanced competitiveness, flexibility, agility and cost optimization. GLOBAL TRENDS: IT OUTSOURCING and OFFSHORING MARKET IT Outsourcing market is showing an average growth of 9% p.a. IT Outsourcing Worldwide forecast (Million $) Source : Gartner Dataquest In terms of volume, North America continues to be the leader in IT outsourcing. Latin America and APAC have shown good growth Europe has fast emerged as a big IT outsourcer Global offshore spending is continuing to register double digit growth. Worldwide Offshore IT Services Spending by Importing Region (million $) Source: Gartner Dataquest, 2004 and Worldwide and U.S. Offshore IT Services 2006-2010 Forecast In terms of volume, the North America continues to be the leader in IT offshoring. Once averse to the idea of outsourcing, Europe is now steadily adopting an IT offshore model to boost the economy Global offshore spending is projected to increase to 29400 $ Million in 2010 The graph on the next page shows the potential market for various types of sourcing options. This clearly depicts that he IT and Business Process offshoring market has grown at a tremendous rate over the past 7 year and the market provides a huge potential which is yet to be exploited. IT and BPO market Source Gartner, Dataquest, Aberdeen Group, McKinsey, Evalueserve, Infosys, IDC and Nasscom strategic review 2008 Currently we are not even exploiting 10% of the potential market size ( IT services off shoring just at $17 Billion, whereas market potential is about $200-240 Billion *) According to a new research by Gartner, the market is likely to grow further after the financial slowdown, as firms will try aggressively to reduce costs and improve efficiency Different Sourcing Models In-sourcing / Shared Services: Sourcing from internal sources or from an affiliated firm in the home economy Onshore Outsourcing: Sourcing from a non-affiliated firm in the home economy Captive Offshoring: Sourcing from an affiliated firm located abroad Offshore Outsourcing: Sourcing from a non-affiliated firm located abroad REGIONAL DYNAMICS ACROSS EUROPE The following section will describe the regional ITO trends and local dynamics across different European locations. UK and IRELAND 2005: â‚ ¬17.2B 2010: â‚ ¬25.7B 2005-2010 CAGR: 8.3% ITO drivers: Improve IT quality for end users, speed/flexibility, access to technical skills, cost reduction Inhibitors: Loss of control, lack of trust, security/privacy, IP Key trends: †¢ Most mature market in Europe with wider number of mega deals (public sector) †¢ Deal sophistication, including government. Increasing interest in new pricing schemes, business enhancement and shared services †¢ More selective sourcing and global delivery †¢ Areas such as Scotland and Ireland feeling pressure of Indian and Eastern European operations †¢ Wide potential for application engagements to mature from project engagements into outsourcing based engagements Despite being the largest and most mature market in Europe, the U.K. remains also one of the fast-growing ones. Here organizations seem to have moved away from the equation of outsourcing = cost reduction. While cost remains a key component, other objectives seem more important, such as improving IT service delivery, gaining specific skills, especially for application outsourcing deals, and becoming a more flexible organization. (See Appendix F) Inhibitions remain related to a general lack of trust in the ability to join forces with the providers to manage security, control over IT operations and IP. The U.K. market is characterized by a large number of mega deals, especially in the public sector. These outsourcing deals often include initiatives that have classically been carried out through project engagements and now are increasingly being performed in the initial phases of an IT outsourcing or BPO deal. This change reflects the growing desire of customers for a tighter link between investment and results (for which the outsourcer is responsible during the duration of the contract) and the important shift in role for the internal IT department. Rather than focusing on assembling and managing all of the necessary skills and capabilities to meet a certain objective, IT organizations, in this scenario, are responsible for coordinating the objectives of the Business Unit and the internal and external providers engaged to support them. Often infrastructure outsourcing is at the core of these complex relationships. At the same time, the U.K. is also the largest market in terms of adoption of IT services delivered through a network of global delivery capabilities (which include nearshore and offshore locations). From this point of view, areas that used to be considered as low cost for outsourcing operations (Scotland and Ireland) continue to feel the pressure of Indian and Eastern European capabilities. Finally, organizations that have engaged for a long period of time in project-based application deals are planning to elevate them into more-strategic, long-term application management engagements. This will allow them to gain a longer-term commitment from the service provider and the relevant support to re-evaluate their application portfolio. NORDIC COUNTRIES 2005: â‚ ¬5.2B 2010: â‚ ¬7.6B 2005-2010 CAGR: 8.2% Drivers: Cost reduction, access to technical skills (especially in application outsourcing engagements), support in global operations, focus on core business Inhibitors: Loss of control, security/privacy, lack of trust Key trends: †¢ Nordic market generally mature. Many large deals are in second or third generation. Some likely to evolve toward multi sourcing †¢ Large corporations see global delivery as a viable option. SMBs see nearshore option more favorably †¢ Consolidation drives specialization by geography, vertical market or horizontal service †¢ Increased competition between regional and global ESPs †¢ Cultural affinity seen as crucial to guarantee deal success/longevity Each of the four country markets that compose the Nordic region has its own distinct characteristics and buying behaviors in IT services. However, if we look at the forecast growth between 2005 and 2010, we expect the region to grow at a similar speed (despite size differences) of about 8%. Denmark: Sometimes seen as the entry point for the global service providers to the Nordics. Expected growth is from â‚ ¬856 million in 2005 to â‚ ¬1.2 billion in 2010 (CAGR of 7.8%). Finland: Unique in the Nordic region as buyers focus much more on business value of an outsourcing deal rather than just cost. Expected growth is from â‚ ¬1 billion in 2005 to â‚ ¬1.45 billion in 2010 (CAGR of 7.5%) Norway: Remains the smallest outsourcing market in the region. Expected growth is from â‚ ¬1.2 billion in 2005 to â‚ ¬1.8 billion in 2010 (CAGR of 8.1%) Sweden: Largest market and very cost-competitive. Probably the Nordic country targeted most by offshore providers currently. Expected growth is from â‚ ¬2 billion in 2005 to â‚ ¬3.1 billion in 2010 (CGR of 8.7%) From a client perspective, the Nordic region market is generally mature, with many large corporations in second- or third-generation outsourcing deals. Global delivery is widely accepted as an option. Competition between regional providers and global providers is increasing; this was initiated by the inability of local providers to support the operations of key Nordic organizations around the globe. However, recent acquisitions and divestitures by both local and international providers prove that the market has still got room for further maturation and consolidation. NETHERLANDS 2005: â‚ ¬3.4B 2010:â‚ ¬5B 2005-2010 CAGR: 8% Drivers: Cost reduction above all, agility/flexibility, improving service to end users Inhibitors: Loss of IP and control, security/privacy, high cost Key trends: Market shows mixed signs of maturity (organizations accept global delivery) and immaturity (sourcing strategy is often neglected) Market split between large global corporations and wide portion of SMBs Increased competition for local/national champions Application under scrutiny for externalization The market in the Netherlands is one of the more modern IT outsourcing environments in Europe, closely following the U.K. in many trends. A focus on global delivery and the expansion of many deals into the application or business process layer points to more market maturity. This maturity is driven primarily by the relatively high proportion of large (and often multinational) enterprises headquartered in the Netherlands and competing in major markets such as financial services. But there are some contradictory characteristics that point to an immature market (cost cutting is by far the major driver, and sourcing strategy is often neglected); this, as a consequence, often inhibits the potential success of outsourcing initiatives. The market remains very challenging and competitive. This is due to the high presence of small and midsize businesses (SMBs), which traditionally tend to consider outsourcing as a threat more than an opportunity and require a higher level of customization, which tests the profitability model of service providers. Competition remains strong for national champions as global and offshore providers continue to target opportunities in the country. Increasingly, application outsourcing opportunities are emerging as organizations look at portfolio rationalization, legacy system transformation, and custom application software development initiatives and accessing application utility solutions. FRANCE 2005: â‚ ¬6.6B 2010: â‚ ¬10B CAGR: 8.4 % Drivers: Cost reduction, refocus internal IT, speed/flexibility Inhibitors: Loss of control, lack of trust, security/privacy Key trends: Beyond its reliance on staff augmentation, Frances outsourcing market shows opportunities in all facets of outsourcing: infrastructure, applications and BPO Selective outsourcing has gained acceptance, and organizations show cautious interest in global service delivery National champions remain under competitive pressure from the global and multinational providers France has long been considered behind in the outsourcing trend. Now, however, the French outsourcing market is consolidating and growing, while the long-standing reliance on staff augmentation is losing strength. The major driver that will support a CAGR of over 8% between 2005 and 2010 is the need for French organizations to reduce cost and enhance their level of competitiveness in the market by refocusing their internal IT skills on more-strategic tasks while gaining flexibility. On the other side, it is interesting to see that challenges related to HR management have lost strength, compared with the traditional fears related to loss of control and security and lack of trust. Large organizations have recently moved toward the adoption of selective outsourcing with multiple providers. This model has gained acceptance as organizations look at maximizing the balance between cost and service delivery excellence. There is also a new focus on application outsourcing. This trend is important not only because it signals an acceleration in the growth of outsourcing in France overall, but because it signals a major change in the way French organizations use different kinds of IT services. Increase in application outsourcing deals also touches on one of the major taboos of IT services in France: offshore outsourcing. As such, although offshore remains a word to be used with extra care in the French market, many organizations would consider that access to global delivery models is an appealing part of outsourcing, especially when delivered by traditional players. In this case, North Africa (Morocco, for example) is emerging as a viable near shore location. National champions, the providers that focus on a specific region or country, remain under competitive pressure from the global and multinational providers. GERMANY 2005: â‚ ¬10.6B 2010: â‚ ¬16B 2005-2010 CAGR: 8.6% Drivers: Cost reduction above all, focus on core business, refocus internal IT Inhibitors: Security/privacy, lack of trust, loss of control Key trends: Global economic pressures have forced many organizations to look at outsourcing as a viable option In the short term, objectives such as flexibility and agility are secondary Pressure to divest internal IT departments or internal shared service organizations remains strong Global delivery gaining ground especially toward Eastern Europe Intensifying competition between strong German players and global ones Legacy system modernization will remain a key objective The German market is â€Å"federated† in several ways: government responsibilities, industrial centers, buying centers within enterprises, and management structures in place. All of this makes doing business in Germany (and negotiating significant IT service deals) unique. Decision processes tend to be longer, require more consensus building and often entail more travel than in other parts of Europe. For a long time, the majority of German organizations have considered IT operations as a key component to maintain or enhance their level of competitiveness in the market. This has, as a consequence, slowed the outsourcing growth. In the past two years, however, economic pressures have forced many organizations to look at outsourcing tactically to cut cost. While in the short term, achieving flexibility is a secondary objective, organizations look at outsourcing as a way to refocus their internal capabilities while focusing on their core business. The traditional inhibitors around security, trust and loss of control apply. While non-German external service providers (ESPs) still find it difficult to position themselves in Germany (exceptions are IBM Germany, which established itself early on as a â€Å"German† ESP, and HP, based on its early SAP hosting business and penetration as a technology provider), German providers maintain strong domestic positions and are starting to focus on expanding their international presence (through T-Systems). In the short term, German organizations will still consider selling their own IT capabilities, while global providers will see these as viable targets to build capabilities as long as they provide financial support through a long-term outsourcing deal. Finally, beyond potential healthy growth for ERP application outsourcing initiatives (especially SAP), as many organizations look at legacy system modernization, it is likely that many projects will evolve and deploy model to include the long-term management of applications. EASTERN EUROPE 2005: â‚ ¬1.1B 2010: â‚ ¬1.6B 2005-2010 CAGR: 7.9% Drivers: Acquisitions made by large Western European organizations, increased competition, need to revamp obsolete IT environments (leap-frog) Inhibitors: Low expertise to manage OS deals, high cost of OS, loss of control Key trends: Slow internal consumption of outsourcing Key nearshore delivery hub for providers supporting operations of European organizations Local Eastern European service providers will remain target for acquisitions Long-term growth will be supported by increasing competition, acquisitions made by Western companies and the penetration of Western ESPs in the region The region has become a strong global delivery hub Recent admission to the European Union has transformed countries such as Poland, Romania and the Czech Republic into attractive locations to establish global delivery capabilities designed to deliver IT services to European or global customers. Eastern Europe has been identified as an ideal region to establish a service delivery hub by U.S.-based providers (IBM, Accenture and EDS), European ones (Atos Origin, Capgemini, T-Systems, SIS and ST) and offshore ones (Ness, TCS, Satyam, Infosys and Wipro). When necessary, providers are openly seeking acquisitions to gain scale; it is the case for SIS, which acquired ELAS, HT Computers in Slovakia, and Ibis-Sys in Serbia (February 2005). Others, like Austrian-based ST, are pursuing a strategy of becoming the provider of choice in Eastern Europe through a combination of organic development and local acquisitions. ST acquired Computacenter Austria to strengthen its product resale capabilities. Although internal consumption of outsourcing has been slow, it is expected to grow rapidly, thanks to increasing competition driven by the fact that private-sector companies and public-sector organizations are now focusing on bringing their systems into line with market standards. This is leading to some â€Å"leapfrogging† effects — the IT utility approach, for example, holds significant appeal without posing the same transition challenges as elsewhere — but because these markets are fairly immature, there is still a strong focus on products and product support services rather than more-sophisticated IT service engagements. Italy and Spain are two other major countries with an expected ITO market size of about 5 Billion $ each by the year 2010. GLOBAL DELIVERY MODEL GDM is a unique approach to outsourcing and off shoring, which offers the best of both worlds by blending onsite, onshore and offshore resources and locations. By using a far-reaching network of onsite, onshore, and offshore resources, GDM aims to cuts across geographies to access the right resources, in the right place, at the right cost. By selecting the most advantageous and cost effective proportion of resources worldwide, Global Delivery Model boosts business performance while also lowering costs. It also helps the supplier deliver requirements that are met on-time, within budget, and with high quality; greater efficiency and responsiveness to their clients. In this section we would discuss in detail, the key drivers to a successful GDM. Source: Capgemini, 2008 KEY DRIVERS OF A SUCCESSFUL GDM STRONG PROCESSES Strong processes are the backbone of a successful Global Delivery Model. There is a strong need for detailed, documented and time-tested processes for all the activities and interfaces. Strong quality and project management processes ensure delivery excellence. World class processes for knowledge management and sharing resources encourage improved learning among teams. Processes for managing talent ensure that the projects get the best and most motivated people. Strong processes for interaction and communication within team make it possible for globally distributed groups to interface and collaborate in an effective manner while delivering excellence on a continuous basis. On the other hand, processes, while strong, should leave ample space for creativity and flexibility. It is only then that the Global Delivery Model (GDM) can create far more value than the traditional sourcing models. Here is what it will translate into: Quicker, seamless transitions, and early project ownership Optimum onsite/ offshore mixes through intelligent allocation of the available resources High degree of predictability through processes, sharing and reuse A strong relationship approach to ensure continuity and business focus Sharing of best practices and tools across the enterprise Depth and quality of resources, continuously trained and retrained to suit project needs Adherence to SLA based pricing models to ensure good Return on Investment (ROI) and drive customer satisfaction PROCESS ARCHITECTURE Companies rely on processes to consistently deliver high quality solutions while executing a number of engagements from multiple locations. According to the policies adopted by a leading IT services provider: values, vision and policies should form the first level of the three-tiered process architecture. These are then implemented through process execution at the next level. These processes are defined with clear ownership and clearly defined roles and responsibilities. Quality System Documentation Quality System Documentation defines clearly all the processes that should be put into place. These documents provide the engineers and consultations with a vast repository of detailed procedures, templates, standards, guidelines and checklists. The comprehensiveness of these documents supports all tasks from higher-level information abstraction and definition to tasks such as coding and documentation. This is crucial to assure clients with the delivery of high quality and predictable IT solutions that meet their business needs. These documents should also be monitored and updated regularly. Knowledge Sharing Employees are given a forum like a website portal, to share knowledge gained from their experience at the organization. It is meant to be a central repository of the knowledge that can be tapped by peers and as sometimes external clients as well. The collection of documents on this portal is reviewed and classified into different areas: Software development life-cycle activities such as requirements specification, design, build and testing documentation. Software-related topics such as tools and quality documentation. Topics of general or operational interest such as travel or HR policies, etc. Process Assets This is a repository to facilitate sharing and giving out of engagement learning across the organization. The user has the facility to submit to the repository, retrieve from the repository and obtain information on the status of the repository. A process asset can be any information ranging from an engagement, which can be re-used by future engagements. Typically these include project plans, configuration management plans, requirements documents, standards, checklists, design documents, test plans, causal analysis reports and utilities used in the engagement, etc. Process Database The Process Database is a software engineering database to study the processes at the organization with respect to productivity and quality. More specifically, its purpose areas are as follows: To aid estimation of effort and project defects To get the productivity and quality data on different types of projects To aid in creating of a process capability baseline Process Capability Baseline (PCB) Process Capability baseline is used to specify, what the performance of the process is, i.e. what a project can expect when following the process. This estimation is done based on the past data. The performance factors of the process are

Physical Education Management Plan

Upon arrival to class students will be greeted with enthusiasm and eagerness to begin class. Students Students will engage in a warm-up review activity that includes questions and problems from previous lessons and assignments. Instruction Format Instruction will be given in a whole-to-parts format. I will demonstrate the new activity, present someone who can demonstrate it, or provide a video of each activity I introduce as a whole. Then I will break the activity into â€Å"pieces† and teach it section by section with several opportunities to recite all learned parts of the activity. This will continue until all the learned parts can be recited fluently as a whole. Behavior Management To ensure minimal undesired behavior I will navigate around the gymnasium constantly in no predictable pattern. With my back to the wall at all possible times my eyes will consistently scan the room for proper technique and opportunities to assistant with improving a student’s technique. My classroom will be managed in a manner that promotes discussion and the sharing of ideas between all members. Students will respect and empathize with fellow classmates and their physical differences. It will be arranged so that I can observe and monitor everyone’s behavior. Also, class activities will be arranged with an ease of transition from one station or skill to the next. My relationship with my students will be open and honest, and non-threatening to learning and mistakes during the learning process. I will make a conscious effort from day to day to treat my students the way I would like for them to treat one another. My class will also have a voice in the selection of activities so that they feel a part of something special and that their opinions and thoughts matter. Students that display undesired behavior will be given a set time to refrain from the activity with the rest of the class. With each repeated offense the time will be multiplied by the number of offenses. Student Engagement It is important to keep students engaged while in class. So, students will be provided with ample physical and thought-provoking activities during each lesson that are well prepared and presented by me. Each activity will be presented thoroughly and clearly so as to give the students a clear picture of what is being asked of them. In addition, the curriculum promotes the use of elaborate physically enriched activities that students work on individually or as a small group once they have received proper instruction. As the teacher I will make frequent eye contact with the students to communicate a genuine interest in their learning. Assessment An effective teacher is in constant motion mentally and physically in the classroom. This attentiveness allows for a constant informal assessment of student learning and behavior. I will maintain anecdotal notes of student performance. Peer performance checklist will also be used for some activities. This form of assessment gives the students an opportunity to evaluate each other as well as give themselves a better idea of what is expected of them.

The media Trump and the Presidential Election - Free Essay Example

Sample details Pages: 4 Words: 1308 Downloads: 9 Date added: 2019/10/30 Category Politics Essay Level High school Tags: Presidential Election Essay Did you like this example? This paper explores the way that the media influenced the 2016 presidential election. More specifically the way news sources reported on Trumps jarring and obscene language, easily digestible for click-bait audiences instead of policy positions. This paper will identify how reporters focused on Donald Trumps tailored comments that were purposely meant to attract media attention. Don’t waste time! Our writers will create an original "The media Trump and the Presidential Election" essay for you Create order The author of a Harvard study, Thomas Patterson said, the mainstream press highlights whats wrong with politics without also telling us whats right,. Its a version of politics that rewards a particular brand of politics. When everything and everybody is portrayed as deeply flawed, theres no sense making distinctions on that score, which works to the advantage of those who are more deeply flawed, Patterson said. This paper will explore the effect that influenced voters had on and attributed to the election of Donald Trump. The way media outlets comment and report on candidates has a large impact on public opinion. During the 2016 election, coverage of candidates was focused on the negative. The phrases lesser of two evils and theyre all bad options were frequently used when describing the candidates. Patterson hypothesized that negative news stories have a corrosive effect and also a neutralizing effect. If negative news stories are featured about all candidates then it levels the playing field and allows for charlatans to enter the arena. The study found that over the course of the general election Hillary Clinton was the target of fewer negative news stories than Donald Trump. However, over the course of the whole campaign Hillary was targeted more than Donald Trump. This coverage has huge effects on public opinion of Hillary Clinton and Donald Trump. The platform Donald Trump created, backed by the media, allowed him to win over the minds of Americans he wouldnt have otherwise. The nationwide, 24/7 coverage, click-bait news stories about Donald Trump was reversly used to his advantage. The provocative things that Donald Trump said gained him news coverage and ended up helping his campaign more than hurting it. Julia Azari, associate professor of Political Science at Marquette University, believes the news media aided the election of Donald Trump by being anti- establishment. She argues that the news media works within the political institutions and has major effects on political decisions. Azari sees the election of Donald Trump as the president as a direct action of the news media. Donald Trumps vague and nonspecific anti-establishment and anti- government driven messages were reported on by every major media outlet. Though Trump was a businessman, television icon and unfit as a political candidate, Azari claims by simply by covering Trump, the media made his behavior seem presidential. Coverage of Trump, perhaps unwittingly, places him squarely within our expectations of the presidency, Azari said. The media also gave the office of president unrealistic power by covering Trumps claims that he was going to perform all of these actions that a president cannot perform alone. Media tropes pr esent a false picture of the presidency, presidents can rarely shape policy alone, Azari said. The cause and effect relationship between the media and its influence on elections requires background knowledge on the functioning of political institutions and how partisan media affects the electorate. For some voters, headlines on social media had the most influence. An article from NPR outlines how the social media boom created a political uproar and changed the tone for discussing politics. It describes how on Facebook people would delete their friends who had different political values from them in friend purges. On twitter, negative re-tweets and sarcastic messages were a similar defense to people with different views. The article points out that political strife was taboo but now it is encouraged. The way Donald Trump uses social media was one of the large focal points of the public throughout the election season. Pictures of his tweets could be found on any social media website, subjecting anyone with Internet access to a constant barrage of political arguments and happenings. It is this constant coverage that allows people to slowly become normalized to the outrageousness of Donald Trumps campaign. Because of how common it was for an incendiary tweet to be put out by the presidential candidate, it became normal. A major reason that these s tories were clogging up peoples news feeds and dashboards is because of the format of social media sites. The article notes that no thoughtful political conversation can happen in one tweet of 140 characters, and those who attempt at such a conversation end up in a loud mess. The article shows a particular interaction between Jeb Bush and Hillary Clinton, over twitter. This type of interaction happened daily during the election season. Sarcastic and aggressive types of political arguments made Donald Trumps hateful messages less shocking and this type of language normal for politicians. Another issue seen in the social media age is the use of bots to stir political arguments and perpetuate a sense of tension between ideologies. Bots spouting out hateful messages such as crooked Hillary and Donald Trump the puppet created a false political environment for the regular people browsing social media sites. Glen Smith, a political researcher, published an article describing how the timing of certain partisan news stories affects a presidential election. Smith wanted to understand at which point voters were most susceptible to partisan biased media. It is known that the effect of partisan media input weakens as an election period continues. However, Smith focused on exactly how, and among what populations, this effect weakened. The primacy effect occurs b ecause new information is processed based on prior opinions. In a process termed hot cognition, Smith said. The feelings brought to mind by ones prior affect toward the candidates influences their motivations when processing new information. Smith finds in his study that a politically uneducated person is more likely to continue to be affected by partisan media throughout the election process. Whereas a politically educated person is more likely to follow the trend and not be as affected later on in the election. Donald Trump had the more votes from politically uneducated and previously politically inactive populations. One can draw the conclusion that the media may have influenced these populations more than others. News stories from fake media sources surfaced near the end of the election and the convenient timing of the re-opening of a FBI investigation. A false news story that Donald Trump was endorsed by the pope was seen across the nation. According to Smith, the education level and political affiliation of individuals determines how affected they are by media at different points throughout the election. The large amount of uneducated people who voted for Donald Trump may have been solidified in their support due to a false news story or clickbait headline. The re- opening of the investigation into Hillary Clinton days before the election also would have a huge effect on these populations even though it was late in the election. The presidential election is hard to understand and complex to determine the causes because of how many factors and different types of people participate in elections. Each election has its own set of variables as society continues to change. In this particular election the evolution of the ways people communicated changed the way elections are won and the political establishment suffered a loss to Donald Trump. Donald Trumps campaign used lack of trust with government and negative campaign met hods to their advantage. Donald Trump won the election however without the indirect help of the news media institutions that did not understand the effect they were having by covering Donald Trump so closely, he may not have. Politics as a whole was so shaken by the victory of Donald Trump a lot of research has gone into exactly how he was elected. This media- centered research will be in mind during the next election cycle.