Survey Predicts Rise in IT Outsourcing

CFO.com reports (Big Rise in IT Outsourcing, Says Survey) about the recent survey conducted by Patni Computer Systems Ltd which says that nearly three-quarters of companies expect to increase their outsourcing budget by at least 20 percent over the next year and a half.

Fully 41 percent of respondents said they expected a 20 percent to 35 percent increase in their outsourcing budget during the next 18 months, 18 percent expected an increase of between 30 percent and 50 percent, and 13 percent expected an increase of 50 percent or more. Just 8 percent said that they expected no increase.

More than half — 54 percent — said that public perception has had no impact on their decisions to outsource. In fact, 30 percent said the only impact was on their ability to speak publicly about their initiatives. While 16 percent did concede that the debate over outsourcing made them reconsider their strategy, no respondents said that it forced them to postpone outsourcing altogether.

As for workforce-related risks: 43 percent of respondents cited lost knowledge, 38 percent singled out mismatched roles and competencies, and just 8 percent cited worker backlash.