£38.7bn UK’s total production came from IT outsourcing

Research into the UK outsourcing sector found that 7.4% of the UK’s total production came from outsourcing, and about a third of that – some £38.7bn – was IT outsourcing. It is a sector that adapts to market conditions, reshaping itself to give customers what they want.

The past year has seen the public sector feature heavily in outsourcing news. The government wants to cut costs, so it has been trying outsourcing models. At the same time, it is putting pressure on its suppliers to do more.

Based on ComputerWeekly’s “Top 10 IT outsourcing stories of 2012

We’ll cut some stories from the original article and the three most interesting are:

General Motors insourcing: One off?

One of the big stories recently concerning outsourcing IT is one about doing the opposite. GM is in the process of insourcing its currently heavily outsourced IT. GM originally bought EDS as its internal IT department before spinning it out as a separate company. It continued to buy services from EDS. Then EDS was acquired by HP, and now, a few years down the line, GM is bringing almost everything in-house.

750,000 more jobs will be offshored by 2016

Businesses in Europe and the US will transfer about 750,000 jobs, including IT, to lower-cost locations over the next four years, taking the total number of jobs offshored to 2.3 million by 2016. But offshoring could stop in the next decade when there are no more roles to go, according to research from The Hackett Group, which looked at 4,700 businesses with annual revenue of more than $1bn.

UK IT outsourcing jobs and sales drop, but sector outperforms others

The number of UK workers employed in the IT outsourcing sector has dropped, as has its total contribution to the UK economy, according to research by Oxford Economics. Research into the UK outsourcing sector in 2010 found that total outsourcing was worth just under £199bn in total sales – 7.4% of the UK’s total production. IT and data-related services was the biggest sub-sector of outsourcing, contributing £38.7bn of the total for the outsourcing sector.