Strategic CIO // IT Strategy
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4/28/2006
09:16 AM
Lisa Smith
Lisa Smith
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Analyzing The Outsourcers

Is your organization outsourcing any IT functions? Outsourcing relationships are constantly evolving, and even the leading IT service providers fall in and out of favor. Here's your chance to sound off about the performance of your organization's key IT vendors in InformationWeek Research's Analyzing the Outsourcers survey. Share your experiences with the editors of InformationWeek by completing our brief and confidential

As a researcher at InformationWeek, I have the opportunity to read a lot of research. Most of the outsourcing research that passes through my E-mail pertains to job loss or the employment implications of outsourcing on IT careers. In fact, with the release of our National IT Salary Survey, there was an article devoted to just this topic. But the goal I've been tasked with is to determine how successful outsourcing partnerships are, and which outsourcing vendors are truly helping customers meet goals and save money. And it was you, the readers, who set this goal. We've had many requests to revisit our Analyzing the Outsourcers research, last conducted in November of 2004.Back then, InformationWeek Research conducted a survey of more than 300 IT professionals, all customers of various outsourcing firms. We asked those IT professionals about their outsourcing plans, spending plans, and satisfaction with their providers.

We've just started fielding an updated version of this research and would like any and all customers of outsourcing vendors to sign on and weigh in about your partnerships.

While most would consider data two years old to be ancient history, some of the results from the previous wave of this research are still thought-provoking:

- In 2004, nearly three out of five companies were spending $1 million or more on outsourcing, and a quarter were spending over $10 million. Contrary to popular belief, most of these dollars were staying onshore. For every dollar spent with outsourcers, an average of 76 cents stayed in the U.S., 5 cents went to Mexico/Canada, and 19 cents went offshore. How does this spending compare to outsourcing spending in 2006? Give us your input.

- Outsourcing is often a way for companies to find expertise not readily available within the organization. This is why nearly half of organizations surveyed in 2004 reported that operational expertise was the most important factor driving companies to outsource. Tell us why your company outsources.

- Outsourcing customers were generally satisfied with their outsourcers, and seven out of 10 companies stated their outsourcing relationship met or exceeded expectations. Rate your outsourcing vendors.

Now it's your turn. Tell me about your organization's outsourcing successes and challenges. Participate in our 2006 Analyzing the Outsourcers research. Not only will you be heard by your vendors, but you'll also get a free copy of the results.Is your organization outsourcing any IT functions? Outsourcing relationships are constantly evolving, and even the leading IT service providers fall in and out of favor. Here's your chance to sound off about the performance of your organization's key IT vendors in InformationWeek Research's Analyzing the Outsourcers survey. Share your experiences with the editors of InformationWeek by completing our brief and confidential survey.

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