Cost the major factor for 8 in 10 IT outsourcers
Around eight out of ten IT outsourcing deals result in a return on investments of at least 25 per cent, a new study has concluded.
Despite the financial benefits of outsourcing IT operations, however, a significant proportion of enterprises are still failing to realise the full potential of the practice, the new report from Deloitte also stated.
Research carried out by the consultancy firm found that 64 per cent of senior managers believe cutting costs is the main attraction of outsourcing IT operations.
In comparison, just 34 per cent of the managers questioned pointed to outsiders' specialist knowledge as the key reason for behind their decision to outsource.
Peter Lowes, a principal with the consultant, said: "Outsourcing is working financially for a majority of companies in this survey.
"However, executives' propensity to lead with cost reduction and labour arbitrage without emphasizing the need for overall optimisation stymies their companies' chances to realise the full benefits of outsourcing."
It was also revealed that 75 per cent of outsourcing service providers feel that their client companies do not have solid business plans in place.
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