Despite estimates that the UK economy will contract by 3.5% this year, confidence in outsourcing remains strong.
This faith is being bolstered by innovation from suppliers and a wider pool of C-level executives involved in outsourcing decisions. According to research commissioned by Patni Computer Systems, 44% of UK IT directors plan to increase their use of outsourcing. A further 26% will maintain current levels of investment. The research shows that main driver of outsourcing remains access to skills. 59% of UK IT leaders admit that the talent delivered by outsourcing would be difficult to create in house. However, 49% of respondents cited an increase in innovation as a source of increased confidence, up from 37% a quarter ago. This was particularly pronounced in financial services.
The report also shows that board-level figures - other than the IT director - are having a much stronger, positive influence when it comes to outsourcing. 22% of IT directors reported that the influence of other board members has led them to have more confidence in outsourcing, compared to just 4% a quarter ago. Brian Stones, executive vice-president for Patni, EMEA, commented: Clearly the messages about the benefits that outsourcing can bring are getting out there and reaching the ears of other directors, not just the people in charge of technology. The innovation and higher value work outsourcing can bring is often critical to competitive success and it now falls to the outsourcing industry to highlight is successes in these cases. Our development of technology in product engineering environments is a good example.
Stones concluded, If we are going to continue to boost confidence in outsourcing, the delivery of innovation, be it new product, service or process is a great place to start.
A full copy of the report is available on request. Please contact Crawford Warnock via Crawford.Warnock@citigatedr.co.uk
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