As economic forecasts predict an ever-lengthening recession, CIOs will continue to be called upon to trim costs and create better operational efficiencies.
We spoke with Frank Casale, CEO and chairman of the Outsourcing Institute, and Allen Weinberg, principal and North American leader of McKinsey & Company’s Outsourcing and Offshoring Practice, about IT functions with the biggest potential for outsourcing or offshoring.
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Application DevelopmentTraditionally the offshoring IT function of choice, offerings are mature and as safe a bet as the CIO is going to get. Experts suggest starting small with a project or two, but bigger moves could follow.
TestingOutsourcing testing functions are another way to start small, particularly if your organization is just dipping its toes in the offshoring pool.
Application ManagementSome companies prefer to keep the dev team, but want to run lean. Application management outsourcing keeps creative control in-house, while upkeep and management are off-loaded.
Database ManagementDatabase management is a likely app management function for outsourcing. An outsourcing firm often retains better database and data management experts than the typical enterprise for a fraction of the price.
ERPAnother specific application function picking up in outsourcing popularity. SAP expertise in particular can be costly to hire fulltime. Either onshore or offshore providers may be able to more efficiently handle ERP management
Help DeskOutsourcing help desk services can streamline an organization, though more advanced support can be hampered by language barriers if this function goes offshore.
PC MaintenanceDebate remains over where to send the jobs, but they’re going. Some companies pick a provider that offers a hybrid approach, with local team members on site when necessary.
Systems IntegrationAs M&A activity picks up, systems integration will grow in importance. The fusion of onshore and offshore outsourcing is useful in this case, as onsite work is a necessary component of integration tasks.
Infrastructure ManagementA popular option over the last several years, but wholesale commitment is not for the faint of heart. This is another candidate for a combined offshore/onshore delivery.
Business Process OutsourcingBPO and knowledge process outsourcing are gaining steam, and CIOs are being tapped to oversee this kind of outsourcing due to their previous outsourcing experience.
Outsourcing 
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