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"While cost reduction was the rationale most often given for outsourcing, companies reported that the second most important reason was to access skills not found in-house."

PA CONSULTING GROUP AND HARVEY NASH CIO SURVEY

Model that works even in turbulent times

Paul Taylor
Financial Times
29 June 2011

PA Consulting Group’s recent survey of more than 2,500 chief information officers conducted with Harvey Nash, is quoted in an article in the Financial Times The Connected Business IT and outsourcing special report. The article looks at how companies, big and small, use outsourcing to give them flexibility as they expand their markets. 

The PA research is used to support the view that many companies are converting fixed cost base for production to a more variable cost basis: “A recent survey of more than 2,500 chief information officers conducted by PA Consulting and Harvey Nash, the recruitment business, reached similar conclusions.

“While cost reduction was the rationale most often given for outsourcing, companies reported that the second most important reason was to access skills not found in-house.

“The same survey also underscores the growing popularity of IT outsourcing. Almost a third of CIOs said they would spend up to a quarter of their entire IT budget this year on outsourced activity and more than one in 10 said they will spend 50 per cent of their budget on outsourcing.

“Software application development remains the most popular outsourced activity, although external help/service desks are now being used by 40 per cent of CIOs worldwide.”

You can read the article in full here.


For more information on how your organisation can think differently about shared services and outsourcing, click here or contact us now here.

   
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