Tuesday, August 7, 2012

Businesses outsource IT for reasons other than cost

Cost-cutting is diminishing in importance as a reason to outsource IT, according to research of 630 contracts worth £14bn carried out by KPMG.

In its 2012 UK Service Provider Performance and Satisfaction study, the KPMG found 70% of businesses are influenced by cost when making their outsourcing decision. This compares with 83% in the last survey two years ago.

The results, from over 200 participants from user businesses, showed 46% said the need for better quality services was their reason for outsourcing, while 51% said it was due to a lack of in-house skills.

Lee Ayling, partner in KPMG’s Shared Services and Outsourcing unit, said the need for better services combined with a lack of in-house expertise is driving outsourcing.

“Just going for a low-cost option isn’t the de facto reason to outsource anymore. Companies are now looking at how outsourcing helps improve the quality of service they can offer to customers," said Ayling.

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