Here is a review of comprehensive Norton Rose’s survey “Outsourcing in a brave new world”
As software development company we are focused at IT and software development issues in this survey, which was conducted in 2011 first from 2008.
The survey also found that customers needed to improve ‘management buy-in‘, ‘good supplier/customer relationships‘, and ‘more sophisticated approach to risk‘ areas of their procurement processes if they wanted to archive the maximum benefits from outsourcing.
It is clear that outsourcing has been affected by the economic downturn
The “Outsourcing in a brave new world” survey shows that cost reduction is the most important driver for outsourcing, customers want flexible solutions, and customers have tightened their diligence processes—apart from those applied to key incoming personnel.
The global economic crisis has clearly impacted on outsourcing strategy and deals. The survey shows that:
U.S. IT companies send their jobs offshore and not going to cut IT budgets.
SIM’s (Society of Information Management) survey shows that offshoring has become so engrained in IT processes that 65% of businesses do it for some aspect of their business. SIM has published it’s annual survey of IT budgets and technology trends last week.
Based on data collected from CIOs and senior IT leaders at 275 companies, survey found that nearly a quarter of the companies using offshore services did so to run existing systems applications. And another 20% said they used offshore services to manage their infrastructure.
The other good news for offshore IT service providers is that companies aren’t cutting IT budgets. Last year, 65% of the firms responding to this survey said their budgets would be equal or greater to the previous year. That increased to 83% this year, and 85% of the respondents said next year’s budgets would be equal or better than their current budgets.
This week U.K.’s Cabinet Office has published guidance to help Government procurers consider supplier proposals “Government ICT Offshoring (International Sourcing) Guidance”.
This guidance is aimed at Chief Information Officers (CIOs), Senior Information Risk Owners (SIROs), Senior Responsible Owners (SROs) and procurers in Government Departments and exchequer funded bodies, to help them consider supplier proposals which include offshore provision and which may offer value for money.
As offshore software development company SoftElegance attended in offshore collaboration with the U.K. Cabinet and Government organizations. “When considering supplier proposals which include offshore provision options should be considered within the wider context of existing policy including the Government ICT Strategy and Plan for Growth” guide says.