Cost No Longer Prime Motivator To Outsource

One-third of surveyed business-tech managers cite cost savings as main reason to outsource; two years ago, two-thirds gave that response
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More than a third of business-technology professionals surveyed by InformationWeek research say their companies will spend $5 million a year or more on IT outsourcing. On Nov. 22, InformationWeek magazine will publish a package of stories entitled Analyzing The Outsourcers, based on a survey of more than 300 business-technology pros who've assessed the performance of the top dozen IT outsourcing firms. Two years ago, when we last surveyed business-technology executives on this topic, nearly two-thirds cited cost savings as a primary reason to outsource. Now only about a third mention cost savings a main factor to hire outsiders to perform IT work. The most common reason given, cited by nearly half the respondents: operational expertise.

Expected Spending, pie chart

Managing Relationships, bar chart

Location Agenda, pie chart

Let's Talk, pie chart

IT Staff Change, pie chart

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Richard Pallardy, Freelance Writer
Salvatore Salamone, Managing Editor, Network Computing
Kathleen O’Reilly, Leader, Accenture Strategy
Cassandra Mooshian, Senior Analyst, AI & Intelligent Automation, Omdia