Technology Outsourcing Myth and Reality

The study was conducted by Enterprise Systems, a supplier of real-world business and technology information aimed at serving the needs of managers of large scale, high-volume computer systems. The study is called, “Outsourcing: Who, Where and Why?” It draws conclusions from responses of those engaged in IT at 744 organizations. The makeup of those answering the survey includes directors, CIOs or CEOs (29%), managers (22%) and IT staff, consultants or coordinators (49%), among others.

One conclusion drawn from the study that runs against widely-held opinion is that most companies are not exporting job overseas, rather 70% of those that are outsourcing elect to use a U.S.-based provider. Too, when work was outsourced, more than 50% of those responding indicated that no internal positions were eliminated.

The two leading IT outsourcing projects were Application Development, by 25% of respondents, and Website Development/Management by 12%.

The three top reasons for outsourcing, according to the report, are reducing and controlling costs (25.5%), having access to IT resources not internally available (16.5%) and freeing up internal resources (16.1%).

Today more than one-third (33.4%) of respondent companies are currently outsourcing projects; a good number (42.8%) are evaluating providers; and the remainder do not plant to outsource or don’t know if they will. For more information, visit http://www.esj.com/.

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