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IT outsourcing and cost cutting

Experts in the field of IT outsourcing have claimed that reducing costs is inevitably one of the driving forces behind a decision to outsource IT support.

Robert Morgan and Jean-Louis Bravard, authors of Smarter Outsourcing, concede that there has been a slight shift from cost to quality in recent years, but they insist that the financial implications of IT outsourcing will always be important.

"The fact is, people do not outsource without a business case for doing so. And whatever other elements go in to making up a business case, cost has to be one of them - even if it is not necessarily the foremost driver," they said in an article for Computer Weekly.

The article goes on to note a trend that has seen IT outsourcing used to reshape businesses for strategic purposes.

As an example, it is argued that businesses are beginning to use outsourcing to focus attention on their most profitable areas, by allowing third-party experts to take care of IT support. It is argued that businesses benefit enormously from admitting that IT support can often be handled much more efficiently and effectively by somebody else.

Businesses are also facing "increasingly stringent and costly regulatory requirements" and it is claimed that IT outsourcing is proving vital in coping with these too.

IT support in London and elsewhere within the UK is undoubtedly allowing businesses to realise frustrated potential. In the modern business world, an ability to maximise growth potential can be crucial for survival and as IT outsourcing matures, this is becoming an increasingly realistic goal.

Source: IHotDesk


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  Date of issue: 05.07.2006  

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