Buyer taking slow outsourcing approach, study finds

Buyers are currently “slow, deliberate and risk averse” when it comes to outsourcing but recognise it can save them money, a new report has claimed.

The most recent Advisor and Business/IT Service Provider Pulse Survey, published by EquaTerra, explained that in the second half of 2009 there was record growth of 44 per cent in new outsourcing deals signed.

However, the research revealed that many of these deals remain in the pipeline as of the first quarter of 2010, as firms choose to delay projects which are complicated or require a large amount of upfront investment.

The study also found that organisations are concentrating on using outsourcing to achieve “sustainable” cuts to their operating costs.

EquaTerra managing director of global research Stan Lepeak commented: “Currently more outsourcing deals are stuck in the pipeline as buyers wrestle with uncertainty. They understand the problems and are painstakingly sorting through solutions and weighing options.”

Recently, Patrick O’Brien, a senior analyst Ovum predicted that more businesses will begin to turn to IT outsourcing as the economy shows starts to recover from the recession.

Source: ihotdesk

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