ANALYSIS
Why IT outsourcing?
Author: Infinite Solutions
The trend of cost cutting encourages big and small companies to outsource as much as possible and focus on
their core business. Recent studies1 have revealed that
a majority of senior managers viewed their IT departments as cost centers rather than strategic resources.
They also perceived their internal IT as being outdated,
inflexible, expensive, unmanageable and lacking in customer orientation. As IT becomes an increasingly crucial part of every business, more and more companies
consider transferring their IT assets, leases and staff to
third parties that promise savings and to keep up-todate with IT.
Outsourcing skeptics should consider the following
facts:
• Outsourcing often results in rationalizations or
transfer of staff to the outsourcing company, this
can lead to bad company morale;
• Outsourced engagements are restricted by contracts which discourage “scope creep”, making them
less flexible than in-house team