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This story was printed from silicon.com, located at http://www.silicon.com/

Story URL: http://www.silicon.com/research/specialreports/offshoring/0,3800003026,39121787,00.htm

Offshoring has potential to save millions
So says recent survey...

By Sylvia Carr

Published: Wednesday 30 June 2004

Poor IT management and the failure to offshore are costing companies considerable amounts of money.

A total of £165m is lost each year because of IT failings, according to a recent survey by Business Engines, a provider of project portfolio management software.

The survey identified three areas that account for the majority of the losses. The first, which makes up 29 per cent of the £165m, is the decision by companies not to take advantage of cost savings related to offshoring certain IT functions. The second is poor management of IT projects, which results in overruns. And the third is failure to align IT with the company's overall business strategy. Each of the last two account for 28 per cent of the losses.

Business Engines conducted the survey over three years, interviewing more than 30 blue chip organisations in the financial, healthcare, retail and telecom sectors.

Business Engines CEO Doug Dickey said in a statement that aligning IT with business strategy was "the quickest way" to save money. While continual evaluation and prioritisation of a company's portfolio of IT projects will also help, Dickey said "the biggest prize" will go to companies that choose to offshore.