IT outsourcing

The appeal of outsourcing is widening as companies seek to offload the complexity and cost of running IT systems, but for some the risks are still too great.

Written by Steve Ranger

Outsourcing has matured over the past decade from being something that a company might do to get rid of an IT nightmare, to something it will do to make its business more flexible and agile.

Many companies feel that the complexity and cost of running their own IT systems is just too much, and are glad to hand it over to a company that specialises in just that.

The public sector - particularly central government - has become an enthusiastic user of outsourcing specialists as it struggles to retain staff with the right sort of IT skills.

And the private sector - particularly financial services - has also realised that it can see benefits.

But some companies remain adamant that they will never outsource their computer systems because they are too central to their business. To hand them over to a third party would be unthinkable.

Outsourcing is here to stay, but there are issues to be resolved that will keep the industry occupied for some time to come.

How much should be outsourced, and to which specialists? Is offshore the best bet? What elements make up the most valuable contracts?

Check out vnunet.com's Special to keep abreast of developments.

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