IT directors go for outsourcing during downturn
1 min read
The financial crisis has failed to dent confidence in outsourcing, with 80% of IT directors still happy that their outsourcing contracts are delivering value, according to research from Patni Computer Systems.
Indeed, Patni reveals that 40% of IT directors planning to increase their use of outsourced IT services in the next 18 months, with only 22% cutting back.
Almost two thirds (63%) of IT directors said confidence in outsourcing had increased because, "the range of skills we need would be difficult to create in-house", while 59% said that "the level of service received from outsourcing providers has increased". 44% said that "in the current climate it makes financial sense to reduce headcount and outsource".
Of those with decreasing confidence in IT outsourcing, 67% believed that "the cost of IT outsourcing has increased", while half said that "the level of service received from outsourcing providers has decreased"
For respondents in manufacturing companies, both of these reasons increased to 75%. The effect of the troubles associated with the Satyam scandal was negligible, however, with only 8% citing "high profile cases of fraud associated with outsourcing" as a reason for reduced confidence.
The Patni Pulse was conducted in February.
