Cutter Consortium, March 7, 2000
http://www.cutter.com/research/2000/crb000307.html

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:

• Difficulty hiring skilled IT professionals: 29%
• Lack skills inhouse: 20%
• Budget: 14%
• Business changes: 12%
• CIO or senior management mandate: 12%
• Reorganization: 7%
• Downsizing: 2%
• Other: 4%

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."

No visitor's comments on this article are posted so far.
Use the form below to become the first who posted his/her opinion here.

Project Management  ||  Software Department  ||  Web Design Department  ||  Human Resources  ||  Business Model
Offshore Development  ||  Testimonials  ||  Contact Us  ||  Post Your Project  ||  Downloads  ||  Links