Posts filed under 'Why Outsource?'
Forty percent of outsourcing suppliers are more confident in the UK market than they were in 2008, according to the National Outsourcing Association (NOA).
The NOA’s latest research showed an 8% growth in outsourcing spending over the last year. The IT outsourcing market grew 12% and business process outsourcing grew6%.
The extension of existing contracts hadthe greatest impact on outsourcing service providers’ turnover, according to 40% of respondents. Ninety per cent of respondents said customers taking outsourced work back inhouse had a low impact. (more…)
August 3rd, 2009
Managed IT outsourcing activity is increasing in the economic downturn, it has been revealed.
According to IT industry analyst Gartner, around 60 per cent of organizations in western Europe will outsource more IT and business process functions in 2009, while renegotiation of existing contracts will rise to more than 60 per cent.
Research carried out by the group indicated organizations are increasingly relying on managed IT outsourcing to achieve cost optimization. (more…)
May 11th, 2009
Almost 60% of organisations in Western Europe say they will outsource more IT and business process functions this year, compared to last, according to an online survey by analyst Gartner. The analyst also predicts that prices of IT services outsourcing will decline by 5—20% through 2010.
“The outsourcing market’s growth has slowed from 2008, but today’s market is characterised by a high volume of activity across the board,” says Claudio Da Rold, vice president and analyst at Gartner.
“These outsourcing contracts very often include offshore work and intense renegotiations. Last year, the activity was primarily concentrated on renewals and new deals,” he adds.
And it’s all about cost reduction. More than 70% of respondents rated budget and cost containment as their top concerns in 2009, up 17.5% from 2008.
“The focus on cost reduction is driving a high usage of outsourcing and global delivery in Europe in 2009 and 2010. However, under the current economic and technological conditions prices are going to decrease, creating a market full of opportunities and challenges for both end-users and service providers,” comments Da Rold. (more…)
May 11th, 2009
Extracting better value from an outsourcing relationship also means transforming the organization, not just keeping headcounts.
Outsourcing is not new anymore. In fact, it has become necessary to outsource either part or most of many organizations’ operations, especially in the current business climate. As ExecutiveBrief had predicted at the start of the year, the decision is not about whether to outsource or not; it is about outsourcing as a critical aspect to the survival of an organization.
However, signing up the help of third parties to cut costs and keep head counts is not the best way to approach outsourcing, no matter the economic climate. Instead of cutting costs, extract better business value from consulting engagements in terms of improving internal processes, learning from the experiences that consultants have earned from their exposures to past projects and clients, and optimizing productivity. (more…)
May 11th, 2009
With the recession forcing companies to become more competitive outsourcing is going to grow in popularity, but at what cost to your company’s security? Whether you are outsourcing development, services or maintenance, the bottom line is you are allowing others to create code and run services that your customers will perceive as coming from you – meaning that you are responsible for any functional problems or security breaches. Outsourcing security According to Gartner, more than 60% of companies do not do any security risk mitigation when outsourcing development. An example of a simple risk mitigation strategy would be to contractually require outsourced developers to adhere to best practices in secure coding. Allowing outside software developers into your shop and then not demanding that they produce secure code raises the white flag to any malicious or insecurely written code. ADVERTISEMENT Of course it is not easy to guarantee that your programs and data will remain secure once you have allowed outside applications to run on your servers or integrated them into your web presence. But there are practices you can adopt that will ensure, as much as possible, that you maintain control over the security of your company and customer information. Managing outsourcing So what should a responsible chief information security officer be doing? 1. The best time to enforce security at a service provider is before you sign the contract. Make sure you make specific and detailed requirements in the contract for what you will and will not accept. (more…)
March 17th, 2009
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