IT outsourcing is tested way of cutting costs, expert says

Financial concerns have been the main reason for companies choosing to invest in IT outsourcing during the economic downturn, it has been suggested.

Adam Stokes, operations manager at the IT Job Board, commented: “The main thing with outsourcing is that it helps to reduce cost – it is a tried and tested method.”

The expert also claimed that other factors have been important in the popularity of IT outsourcing, such as the “perceived brain drain” caused by contract rate reductions faced by IT staff.

In addition, Mr Stokes suggested that the recession has seen IT departments become more resilient as they have reduced costs and increased value by moving some of their operations online, as well as making more use of IT outsourcing.

Recent research conducted by the IT Job Board found that 76 per cent of respondents think the UK will suffer from a lack of IT skills as workers seek employment overseas, which could show the need for IT outsourcing.

Source: ihotdesk
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