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Study: IT execs expect more outsourcing

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Published: March. 26, 2004 at 12:32 PM
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CHICAGO, March 26 (UPI) -- Despite election-year outrage and media attention, outsourcing is a long-term feature of U.S. economic life, say information technology managers.

A Chicago management consultancy's survey of U.S. IT executives found that 86 percent expect the use of IT outsourcers to increase over the next 12 months.

IT outsourcing, whether offshore or onshore, has all the characteristics of a maturing business, said Tom Weakland, who leads the outsourcing advisory services practice at DiamondCluster International.

"Executives have become more realistic in their expectations and are now more likely to implement outsourcing initiatives incrementally," Weakland said.

"The outsourcing euphoria that we saw in 2002 has been replaced with a focus on sourcing as a business-enabler.

"While reducing costs is still the number one reason fueling the outsourcing trend, another key factor is that companies are looking to free up internal resources to focus on more critical initiatives."

© 2004 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.

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