Business Value of IT Outsourcing Still Eludes Many Companies, Says AberdeenGroup
Amid the increasing popularity of outsourcing corporate information technology functions, companies are reporting only adequate results for the IT work they have outsourced so far, according to a new report from AberdeenGroup.
Aug 14, 2006
A recent Aberdeen benchmark survey of 130 enterprises found many companies struggling to get the value they were looking for, although some reported very satisfactory results with such functions as data center operations and application development and maintenance.
Cost reductions are the main reason companies outsource IT work, survey respondents indicated.
"Our survey found that many companies need to better manage the relationships they have with outsourcing providers, as well as manage their expectations from outsourcing IT work," said Rick Saia, Aberdeen’s research analyst for information technology services. "Companies that came out as Best in Class in this survey do a better job of this and, as a result, are experiencing higher payback."
Separating the best from the rest
Best in Class companies also exhibit other clear differentiators of IT outsourcing success, among them:
Cost reductions are the main reason companies outsource IT work, survey respondents indicated.
"Our survey found that many companies need to better manage the relationships they have with outsourcing providers, as well as manage their expectations from outsourcing IT work," said Rick Saia, Aberdeen’s research analyst for information technology services. "Companies that came out as Best in Class in this survey do a better job of this and, as a result, are experiencing higher payback."
Separating the best from the rest
Best in Class companies also exhibit other clear differentiators of IT outsourcing success, among them:
- They are most likely to use outside help, such as consultants and lawyers, for input into an outsourcing decision;
- They are more likely to get the RFP and pricing right.