Squeezing More Value Out of Outsourcing

Businesses are doubling down on IT outsourcing, according to a recent Computer Economics study that polled 131 IT organizations of various sizes and in a cross-section of industries about their outsourcing trends. But a closer look shows a more textured trend: Organizations aren't looking for new functions to outsource, but instead are tending to outsource more work in the areas in which they've already become accustomed to relying on third parties. If they do decide to outsource new functions, the focus tends to be on areas that require specialized skills. "Not surprisingly, IT security was the fastest growing function being outsourced," said David Wagner, vice president of research for Computer Economics. "The variety of threats and the danger they pose increase yearly. Finding and maintaining the right skills to meet these threats can be a challenge. Turning to experts to supplement internal IT security skills is a wise choice for most organizations." Wagner noted that outsourcing of other specialized functions, such as disaster recovery and network operations, is also growing. Meanwhile, application development remains the most oft-outsourced function and is most reflective of the study's major takeaway: While the percentage of companies outsourcing AppDev is shrinking, those who are outsourcing this function are planning to do more of it.