IT offshoring is an unpopular option for the vast majority of UK firms,
according to a report released in May by skills body E-Skills UK.
The quarterly ICT Inquiry report revealed that only four percent of 1,000 UK
firms surveyed had outsourced some of their IT or telecoms functions to an
offshore services provider. And 94 percent of respondents said they did not
currently offshore any IT or telecoms activities and had no plans to do so
within the next two years. Only two percent were considering the use of
offshoring in that timeframe.
Phillip Everson, partner in consulting at consultancy firm Deloitte, said he
was surprised that so many firms were against offshoring. “It doesn’t surprise
me that offshoring is not quite as popular as some would have it, but these are
very strong figures,” he added. “If it was 60 or 70 percent of firms, I’d have
expected that.”
Everson said part of the reason for the low levels of interest could be IT
managers’ concern that offshoring would reduce the control exercised by
themselves and their departments. “This is more a fear with offshoring than with
outsourcing,” he argued. “Although there is also wariness about outsourcing at
present, with reports of some large organizations taking outsourced work back
in-house.
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