Public sector shuns outsourcing

While offshore outsourcing - where facilities and services are located overseas - has attracted a lot of attention recently, a...

While offshore outsourcing - where facilities and services are located overseas - has attracted a lot of attention recently, a survey on the outsourcing market from PMP Research suggests that this option does not appeal to public sector organisations.

Almost 30% of private sector organisations polled make some use of offshore facilities. In comparison, not a single public sector respondent said they used such services.

This is despite the fact that the public sector’s use of other outsourcing options mirrors or exceeds the rates of use found in the private sector.

The most common outsourcing choice for both sectors is managed services (60%), followed by traditional outsourcing - selected by 60% of public sector organisations and 50% of private sector concerns.

Overall, enthusiasm for offshore outsourcing is muted, with 45% of respondents describing this choice as "not very important" to their future plans and just 11% indicating offshore services will play an increasingly important role in their organisation.

The survey says spending on outsourcing services of all kinds is set to rise, with 36% reporting an increase in investment and 38% indicating their spending has remained constant.

The most common applications outsourced are website and e-business activities, cited by 54%, with a further 31% planning to outsource these in future.

Network infrastructure (53%), desktop systems (47%), IT helpdesk (47%) and service infrastructure (46%) are also likely candidates.

The desire to reduce operational costs along with the requirement to improve service levels, are revealed as the key reasons to look for a deal.

Difficulties in managing the relationship with the outsourcing supplier emerges as the main barrier to a successful outsourcing deal, according to 71% of those polled.

For more news on outsourcing click here

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