Outsourcing is the "endgame" for IT departments

Almost three-quarters of businesses believe outsourcing is the "endgame" for their IT departments--and it is usually the CEO or finance director who will make the decision, according to a new survey.

Almost three-quarters of businesses believe outsourcing is the "endgame" for their IT departments--and it is usually the CEO or finance director who will make the decision, according to a new survey.

The poll of 250 delegates at the National Outsourcing Association's (NOA) summit this week showed 72 per cent of end user companies and 82 per cent of IT supplier companies in favour of IT outsourcing.

Nigel Roxborough, founding member of the NOA, acknowledged the figures are not surprising given the delegates were attending an outsourcing conference but he said it is not unrepresentative of the wider picture for UK plc.

"Various sources show around 70 per cent of companies have outsourced at least one business function," he said.

The decision to outsource IT also more often than not comes from above the IT director or CIOs head, according to the poll. A third of end user firms said the final decision is made by the CEO and 21 per cent said it is down to the CFO. Just 14 per cent said the CIO makes the decision.

Roxborough said: "If someone is going to outsource the IT department it isn't going to be the IT director. The CEO is thinking of the direction of the company and may see an opportunity."

The continued trend towards outsourcing will also mean more IT workers will find themselves transferred to an outsourcing organization. Roxburgh said this is a good opportunity for many staff.

"Many people who transfer to an outsourcing organization believe it offers better opportunities. Generally people who transfer across do get a better career experience and benefit from a wider mix of experience and working on different projects," he said.

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