IT outsourcing 'to improve business processing'
News Article - Friday, February 29, 2008 11:28
Filed under: Hosting, Storage & Managed Services
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A new study has claimed that more companies opt for IT outsourcing (ITO) to improve business performance, disproving the common perception that it is entirely to reduce costs.
Research by Gartner has found that 41 per cent of businesses were outsourcing their IT to improve business outcomes and performance, compared to just 28 per cent three years ago.
Of the 750 executives questioned 47 per cent still said the move was cut or reduce costs.
Allie Young, vice president of Gartner, said: "Cost issues remain strong, and the shift in buyer expectations toward viewing ITO as a means to enhance operations is a sign of a maturing market that has higher expectations from ITO providers."
She added that outsourcing companies now need to appeal beyond cost effectiveness, to create an impact or vision for buyers who want more value.
The research also showed that 88 per cent of companies are planning on moderate or high levels of outsourcing in the coming year.
India was recently named as the most popular outsourcing county, as it has been used by every UK company which has off-shored some IT processes.
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