Saturday, November 17, 2007

Outsource for strategy not just savings


Businesses are increasingly considering IT outsourcing for strategic benefits and not just as a means of cutting operational costs, according to the latest survey from Harvey Nash.

In its ninth annual outsourcing survey, which questioned 650 senior IT professionals, the IT outsourcing consultancy found that outsourcing is booming as businesses recognise its strategic benefit.

The research also found that businesses are gaining access to specialisations in a number of countries by multishoring. "If companies are outsourcing IT support to India and admin tasks to the Philippines, this allows them to make use of each countries strongest skills," said the report.

It added that with half of CIOs expecting their IT budget to grow next year and planning to spend more than 10% on IT outsourcing programmes, the outsourcing industry will continue to grow.

The National Outsourcing Association said, "It is about time businesses realise that there is more to outsourcing than just operational cost savings. The specialisation that outsourcing brings can deliver a number of strategic benefits such as responsiveness and flexibility, as outlined by Harvey Nash."

"Although companies are focusing their outsourcing strategy on non-cost related issues, it is important not to dismiss the cost element. Cost is still a key driver when companies make the decision to outsource."