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Cutter Consortium, March 7, 2000

Hiring Difficulties Biggest Reason For Outsourcing

By Cutter Consortium

According to a business-IT alignment study of 154 companies conducted by Cutter Consortium, a large percentage of companies -- 29% -- cite hiring difficulties as the greatest factor in their decision to outsource. When asked what primarily motivated their organization to map their IT insourcing/outsourcing options, the results were as follows:

Mike Epner is a senior consultant on the Cutter Consortium Sourcing Advisory Service. Says Epner, "It's interesting that budgetary concerns were cited by only 14% as the primary motivator for contemplating outsourcing. Most respondents seem to view suppliers as a means to meet an immediate internal need, rather than as part of a long-term outsourcing strategy backed by a solid business case."

Epner continues, "This short-term focus and lack of planning can leave an organization ill-equipped to handle the demands of managing a supplier and maintaining a viable IT staff. It can also lead to unsuccessful projects, schedule delays, and questions about what could have been done differently."

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