Outsourcing Rush in a Halt

Filed in archive Outsourcing News on July 25, 2006

The number of firms considering IT Outsourcing is still growing but the rush behind it is now gone. This was the conclusion shown by Diamond Cluster International Inc. in their annual Global IT Outsourcing Study. There were at least 153 senior executives who participated in the study from firms with IT budgets ranging from $5 million to $500 million.

There were different reasons mentioned for the decline in the interest for IT outsourcing. Some of the reasons include outsourcing too quickly thus outsourcing the "wrong" functions, dealing with unsuitable outsourcing provider, having unproductive contracts, and being totally unprepared for it.

Though that is the case, the interest for outsourcing still remains. According to the study, 2/3 of the participants remarked that they still have the intention of increasing their level of offshore outsourcing in the following months.