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January 15, 2010

Rosy outlook for outsourcing predicted for 2010

Skills not costs main driver to outsource

By Vinod

Demand for skills will drive UK firms to outsource more this year, according to research from BPO and IT services provider Patni Computer Systems.

“Cost will always be high on the agenda but it is increasingly less of a differentiator. If you’re a buyer of services it’s not just about costs as it may have been as recently as three years ago. Finally, we are really getting to the position where it isn’t just about cost,” said Jeremy Mackinlay, marketing director at Patni.

Confidence in outsourcing has built over the last year, despite the credit crunch, with the percentage of respondents saying they expected to outsource rising from 40% in March to 48% in December.
Four out of five of the UK IT directors surveyed felt that outsourcing delivered financial value, even during a recession. Alongside access to skills, the level of service was also seen as a key driver to outsource.

Looking ahead to 2010, Mackinlay believed that the UK election and possible change of government may increase the relatively low levels of offshore outsourcing seen in the public sector.

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“There’s also an opportunity for growth around consulting piece and I think that companies will be beginning to use high-level consultancy services with an offshore and onshore blend,” said Mackinlay.

 

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