IDG Survey: IT & Business Managers Disappointed With Outsourcing Results

April 30, 2011

According to published reports, a survey has revealed that business and IT managers are not satisfied with their outsourcing results. In fact, a report on CIO.com states that these managers and executives are blaming their own company managements for a lack of efficiency when it comes to outsourcing.

A survey done by IDG Enterprise Outsourcing and Service Providers showed that the real need of business clients was not for tech outsourcing providers to innovate and become a partner in the value chain, but something much more straightforward.

Of the 1,176 managers who were polled, some of the biggest requirements for outsourcing included accessing skills that were unavailable to the host firm – this was 52%, reducing costs – relevant to 50% of the executives, and management of staffing requirements – relevant for 44% of those who were surveyed.

The poll also revealed that about 33% were seeking service providers who would be able to support and come up with new projects and to enhance technology and business processes. Just a small amount of 19% hired outsourcers to provide innovation for the company.

What most managers considered significant when choosing vendors included the following: With regard to onshore vendors, some of the differentiating factors were cost – 94%, technical or business expertise – 92%, along with the availability of a wide talent pool – 88%.

However, with respect to offshore service providers, reputation tagged at the top, trailed by expertise with 89%, the availability of talent pool at 88%,  and cost at 87%.

Interestingly, the IDG survey also showed that accomplishing the desired results in the industry is still in a evolving phase. Only 44% of those surveyed said they were satisfied with the services provide. Only 34% of those polled said they were able to accomplish cost reductions, while 36% said that the flexibility in staffing models were met.

Only about a quarter of the executives said that their own management’s service delivery and measurement procedures were up to the mark.


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