Outsourcing has got a long way to go yet, say tech execs

IT decision makers don't believe that the trend towards outsourcing and offshoring has run its course just yet and expect to see spending rising, according to new research.

The survey, carried out by PMP Research for Computacenter, found that cash was still the motivating factor for those considering outsourcing. Over 50 per cent of those queried said they had seen cost savings from outsourcing, as well as a wider range of IT knowledge.

Over 70 per cent of IT execs reckon that companies' spend on outsourcing will go up or at least won't drop. However, 60 per cent have discussed offshore outsourcing within their company and decided that it's not for them.

Analyst house Gartner also believes that offshore outsourcing is on the up, saying last month that business process outsourcing (BPO) will grow by 65 per cent this year, making a $3bn market.

Robert H. Brown, principal analyst for Gartner's sourcing group, said he expected BPO to really take off once operational, cultural and sociopolitical problems have been overcome by the BPO suppliers.

silicon.com's own CIO Jury, however, said earlier this year they don't believe that the trend towards offshoring is inevitable. Of the 12-man jury, two-thirds believe business won't automatically move towards outsourcing areas of their business offshore.