UK Firms Wasting £1.5m Offshoring

Filed in archive Outsourcing News on April 20, 2005

According to new research, UK companies are wasting up to �1.5 million and twenty-four months on developing web-based applications when they offshore business processes.

In the research conducted by Centrix, an IT services consultancy firm, many UK companies are sending business processes and their associated software applications offshore for processing, and then emailing them back to the UK. This creates an increased demand for bandwidth and bespoke web-based applications at an average cost of �2 million and development time of two years.

Centrix said that companies should implement server-based computing or thin-client environment in order to save money (�1.5 million), and reduce implementation time (from two years to just 8 weeks).

Lisa Hammond, chief executive of Centrix said, "It is clear that companies offshore business processes to reduce costs, but sending data back and forth costs too much in bandwidth and developing bespoke web applications eats further into the desired timescales and savings. Companies can dramatically reduce development costs, implement in a matter of weeks not years and reap the on-going financial benefits by keeping bandwidth costs low. Plus, holding the data in the UK has huge security benefits."