Outsourcing demand booming as businesses wise up to its benefits
As growing numbers of organisations recognise the true value of the practice, the factors driving businesses to outsource IT work are starting to change, a new report has found.
According to recent research carried out by Cognizant, around 80 per cent of an average IT organisation's budget is trapped up in "dead money" tasks, such as paying for maintenance and infrastructure, a fact that is leading many to outsource such tasks in order to focus on developing the core of their business.
"Offshoring is no longer about just providing operational efficiencies, but is engaged to create process level efficiencies and effectiveness at the application level," explained Malcolm Frank, the company's vice president of marketing and strategy.
Furthermore, experts speaking at the Forrester's recent Services and Sourcing Forum 2007 claimed that industries such as retail and media are particularly looking to outsource their IT operations as a means of freeing up a large part of their budgets.
Such is the demand for outsourcing that a number of European and American businesses now have more Indian than domestic employees, with IBM now the largest private employer in India.
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