Summary
The FT looks at how IT outsourcing has grown over the years and now tends to the 'norm' for some companies. Businesses commonly use outsourcing to drive down their IT spending, and it has been particularly successful in tackling fixed costs.
PA's Jonathan Cooper-Bagnall says that around half of companies have a strategy for sourcing - not just for IT - and among those, only half again manage sourcing strategy at board level.
Says Jonathan:
"Sourcing is often done on a functional basis. As a result clients build their business cases at a departmental level. IT might be letting a contract, and HR and Finance might be doing the same thing."
Supervision at board level becomes critical when companies start to outsource processes close to their core business.
