US companies are reducing their IT outsourcing activity, with a growing number now taking back their IT.
While IT outsourcing is still growing, Chicago-based management consultancy DiamondCluster International said some companies were now beginning to reduce their outsourcing activity.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
DiamondCluster’s annual outsourcing survey, conducted among 155 senior level executives with IT budgets of between $5m (£2.8m) and $500m (£285m), showed that 9% of companies were now reducing their onshore outsourcing activities.
In addition, 8% said they were cutting back on their offshore outsourcing activities.
Two years ago, in the same survey, no respondents said they would be reducing their outsourcing activities.
Reasons given by companies for reducing their outsourcing included outsourcing mistakes having been made last time, the wrong providers having been picked, bad contracts, or not being prepared to cope with the demands of outsourcing.
Almost half of the survey’s respondents (47%) said they had fired an outsourcing firm in the past year for not living up to expectations. The figure was just 21% in 2004.
Vote for your IT greats
Who have been the most influential people in IT in the past 40 years? The greatest organisations? The best hardware and software technologies? As part of Computer Weekly’s 40th anniversary celebrations, we are asking our readers who and what has really made a difference?
Vote now at: www.computerweekly.com/ITgreats