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TOP IT U.K. outsourcing stories of 2012

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£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.

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IT outsourcing predictions for 2012 by CIO.com

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2012 will bring some new IT outsourcing trends

Originally posted by Stephanie Overby, freelance writer, for CIO.com “12 IT Outsourcing Predictions for 2012“.

“In 2011, the IT outsourcing industry was marked by smaller deals, leery customers, profit-squeezed IT service providers and a lot of cloud computing talk. Much of that could continue next year, but as 12 predictions for 2012 indicate, you can expect some new IT outsourcing developments”.

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#1. 2012 Will Be a Mixed Bag of M&A Activity

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