Short-term cost-cutting still key outsourcing driver

Short-term cost gains are still the main driver for outsourcing IT, according to new research from analyst Gartner.

Reducing costs and improving efficiencies were cited as the main reasons for outsourcing by more than half of the 945 respondents to the global survey.

The other main outsourcing drivers after cost cutting include achieving speed and flexibility, and gaining access to technical expertise and skills.

But the reasons for outsourcing also differed by vertical market and geography. Financial services and public sector organisations are the most likely to go down the cost-cutting route while US respondents cited improving IT service to end users as their leading driver.

The top two inhibitors to IT outsourcing are data security or privacy issues, and concerns around the potentially high costs of outsourcing.

Allie Young, research VP at Gartner, said in a statement: "Companies have a growing concern about losing control of their intellectual capital and the business knowledge of key employees whose jobs or roles may be threatened by outsourcing, particularly when downsizing occurs."

Advertisement

Talkback 0 comments

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • Renai LeMay How reliable is IP telephony?
    Have you ever heard a weird kind of hissing, crackling or popping noise when calling someone on an IP telephony line? How rare is the phenomenon these days?
  • Array Forget the NBN, 100Mbps is already here
    Telstra and TransACT will shortly begin offering 100Mbps broadband to many customers. By moving early, the companies have not only raised the bar for Australia's broadband services, but thrown down a challenge to a government that now faces increased pressure to deliver the NBN as promised.
  • Array IT: Govt's cost-cutting bitch
    The government needs to stop looking at IT as a necessary evil or the place to remove costs when the Treasurer comes calling.
  • More blogs »

Tags

Back to top

Featured