CIOs plan more outsourcing

And not just to save pennies...

Saving money is no longer the top reason for IT outsourcing, according to a survey of more than 650 UK CIOs and senior technology professionals.

Three-quarters of those surveyed said responsiveness and flexibility are the primary drivers behind their decision to outsource, research from recruitment consultancy Harvey Nash reveals.

India is the most popular place to offshore, according to the research, with China coming second and the US third.

Top 10 offshore destinations according to the Harvey Nash survey

1. India
2. China
3. USA
4. Malaysia
5. Brazil
6. Philippines
7. Vietnam
8. Poland
9. Romania
10.South Africa

Of those surveyed, 53 per cent expect their IT budget to grow next year and half plan to spend more than 10 per cent of it on IT outsourcing programmes.

The vast majority (93 per cent) of CIOs plan to maintain or grow their current offshore software development activity in the next 12 months and nearly two-thirds (65 per cent) are satisfied with the service they receive, the research reveals.

Paul Smith, global managing director of outsourcing and software development at Harvey Nash, said it is clear IT outsourcing is here to stay. And it's no longer seen as just a cost-cutting exercise, with more and more businesses now reaping the strategic benefits and allocating their budgets accordingly.

As the reasons behind the decision to outsource change, Smith added, there will also be a dramatic change in outsourcing hotspots, with Eastern Europe and Vietnam already making a significant impact on the IT outsourcing map.