Monday, July 11, 2005

Global Outsourcing Survey Findings

From: cio news

DiamondCluster International released its third annual Global IT Outsourcing study earlier this week. The survey of 210 senior-level IT executives at global 1000 companies found that while they are increasingly dissatisfied with the service and results they’re getting from their outsourcing patners, particularly offshore companies, 74 percent plan to increase their use of IT outsourcing this year.
Companies’ satisfaction with offshore providers dropped to 62 percent this year from 79 percent last year. Another stat that indicated buyers’ dissatisfaction with outsourcing was the number of buyers who had terminated outsourcing agreements in the past 12 months: that number more than doubled from 21 percent last year to 51 percent this year.
As a result, 7 percent of the IT execs who responded to the survey indicated that they planned to decrease their onshore outsourcing and 5 percent planned to rein in their offshore outsourcing.
Also of note was the percentage of buyers who plan to outsource some IT functions to China in the next three to five years: that number jumped to 40 percent this year compared with just 8 percent last year.

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