Do not expect big savings from outsourcing, say IT managers

User organisations should not expect significant savings from outsourcing contracts, according to almost three quarters of the IT...

User organisations should not expect significant savings from outsourcing contracts, according to almost three quarters of the IT managers polled in this week's Computer Weekly/Harvey Nash Big Question.

Last week, Computer Weekly revealed that the Driver and Vehicle Licensing Agency (DVLA) had not achieved the 30% saving expected at the start of its
£5m outsourcing contract with IT services giant EDS.

Some 73% of respondents said projected savings such as this are unrealistic. "Our experience of outsourcing is that firms should be using it as a means of providing a better service for the same money rather than expecting significant cost savings," said one IT manager.

"There is no way that a well-managed, large IT department can be outsourced and a saving made," said another. "Savings can be made if the department is not well managed - implying that costs are out of control - but all the advice is that this is not the right position to start outsourcing from."

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