Three-quarters of the 650 UK CIOs in recruitment firm Harvey Nash’s annual survey flagged up responsiveness and flexibility as the key benefits driving them to outsource.
While cost savings are importat, companies now have confidence in outsourcing to deliver strategic benefits that make them look beyond the price tag. This confidence was reflected in the fact that half of the CIOs surveyed plan to spend at least 10% of their budget on IT outsourcing.
It is clear that IT outsourcing is here to stay. No longer seen as just a cost-cutting exercise, more and more businesses are now reaping the strategic benefits and allocating their budgets accordingly, said Paul Smith, global managing director, outsourcing and software development at Harvey Nash.
Much of this outsourcing budget will go to offshore software development, with 93% of respondents planning to maintain or expand their offshore activity over the next 12 months.
India’s and China’s popularity continues unabated as they secured the top two offshoring destinations in the survey. Brazil and Vietnam are rising through the ranks to the number five and seven spots, respectively.
