Outsourcing to move beyond IT



Guy Campos

Business process management is counting on more and more outsourcing activity as interest in IT outsourcing dwindles,...



Guy Campos

Business process management is counting on more and more outsourcing activity as interest in IT outsourcing dwindles, according to consultancy Romtec.

Romtec, which issued its latest report on outsourcing last week, says that cultural change has made the outsourcing of entire business functions more acceptable following the trail blazed by datacentre facilities management.

The annual value of business process outsourcing contracts grew 37% last year to £0.6bn. Meanwhile the annual value of pure IT contracts grew just 3.5% to £1.6bn - the larger total reflecting the longer history of IT outsourcing.

Stephen Timms, IT services research manager at Romtec, said businesses now accepted that the key benefits of outsourcing - lower costs, freedom for managers to focus on the core business, and the ability of the outsourcing company to keep up-to-date with technology - applied as much to functions, such as accounts, as to IT.

However, decisions to outsource were still often prompted by the cost of investing in up-to-date IT systems. IT directors were therefore likely to be key influencers in the company decision about outsourcing an entire business process.

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