Outsourcing has become a standard feature of the modern
IT department - and one of the most
controversial.
Demand for outsourcing has continued to be strong throughout the
downturn in the IT industry. During the past five years offshore
outsourcing has become a mainstream business practice, with
companies eager to take advantage of low-cost countries such as
India and China that offer a highly-skilled workforce.
However, the trend for organisations to move their IT systems and
business processes overseas has run into increasing opposition from
unions.
Concerns centre on job losses and data protection issues.
A report by Forrester Research last month predicted that the UK
will lead the growth in offshore outsourcing across Europe over the
next 10 years.
By 2015, the UK will transfer 150,000 IT jobs and 100,000
IT-oriented clerical jobs offshore, more than in Germany, France or
Italy, according to the market analyst.
When non-IT jobs are included, the total number of UK jobs expected
to go offshore by 2015 rises to 760,000 in the UK, equivalent to 3%
of the workforce.
This will place the UK at a strong economic advantage over other
European countries that are moving jobs to offshore at slower
rates, Forrester claimed. It also predicts that there are likely to
be acquisitions within the IT services market as the economy in
Europe falters and Indian suppliers become more dominant.
Companies including Barclays and Citigroup have recently bought a
stake in or acquired their offshore outsourcing supplier outright.
The deals, which are similar to joint ventures between financial
and IT services companies over the past four years, suggest that
the offshore outsourcing market is maturing and entering a new
phase.
Meanwhile in the UK, strike action by Swansea council IT staff over
a proposed outsourcing deal will give many users in the industry
pause for thought.
IT managers are left with a number of challenges including selling
an offshore deal to a sceptical workforce and managing a supplier
thousands of miles away in a different time zone.
Companies buy a piece of the outsourcing
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