In the Official Journal of the European Union, FT estimated that the public sector outsourcing tenders worth some £4 billion are now under negotiations. This by no means that relates to ICT outsourcing that is estimated at about 5%-6% of the said figure with the higher levels associated with business process outsourcing however ICT does form a significant part and plays a role in other contracts. The other piece of details is a survey of 250 OT professionals released by the security software specialist Lieberman Software that reveals IT outsourcing instead of saving organizations money that can actually end up costing.
The 42% of respondents reported that costs for their outsourcing agreements were higher than originally planned base to the survey. 64% of them believe that their IT outsourcer had already invented projects to inflate their fee. The 71% do outsource of their outsourcers more than work performed in house, the 52% felt the quality of service that was about the same while the 33% have less trust in the work performed by the outsourcer. Base on the FT reports the first snippet as a boom for outsourcing but combined with the second, the boom could be louder an d more damaging than they expect. The FT cannot afford any false friends with no money to spare in the public sector.
Philip Lieberman the CEO of the software company’s stated that while the outsourcing might at first appear to be perfect solution to cutting costs in times of austerity. The trust in the quality of work is being eroded is a worrying trend but for him the thought work is being manufactured to inflate fees even more of concern.
He also said that when Information Technology is increasingly a strategic tool for successful companies. The winners will be those organizations that use technology to create differentiation that’s difficult for the competitors to match in the coming decades. They must select their IT outsourced partner on an appropriate set of criteria for those organizations that use technology to create differentiation that’s difficulty for competitors to match.
For those organizations that are going to do they must select their Information Technology outsourced partner on appropriate set of criteria however resiliency, data security, transparency and ultimately trust.
