Outsourcing IT is not often as attractive as it seems

News by SC Staff

Businesses are being stung when it comes to outsourcing, according to a survey by privileged user management vendor Lieberman Software.

Businesses are being stung when it comes to outsourcing, according to a survey by privileged user management vendor Lieberman Software.

A survey of 250 IT professionals found that 42 per cent of respondents said that costs for their outsourcing agreements were higher than originally planned, while 64 per cent believed that their IT outsourcer had actually invented projects with one ulterior motive - to inflate their fee.

While almost three-quarters of the people (71 per cent) choose to outsource a ‘significant portion' of their IT requirements, only 15 per cent said that they trusted the quality of work performed by their outsourcers more than work performed in-house. Just over half (52 per cent) felt the quality of service was about the same, while 33 per cent had less trust in the work performed by the outsourcer.

Philip Lieberman, president and CEO of Lieberman Software, said: “While on the surface IT outsourcing may seem the perfect solution, the reality is that the grass is not always greener and for some it's actually a mirage. The fact that trust in the quality of work is being eroded is a worrying trend but, for me, the thought that work is being manufactured to inflate fees is even more of a concern.

“When used effectively, IT is increasingly a strategic tool for successful companies. In the coming decades, the winners will be those organisations that use technology to create differentiation that's difficult for competitors to match. For this reason, the decision to outsource should not be taken lightly. However, for those organisations that are going to do so, they must select their IT outsourced partner on an appropriate set of criteria – not just cost, but resiliency, transparency, data security and ultimately trust.”

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