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| Market Research
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Wising up: Pat Sweet, PMP Research (July 2006)
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Once regarded as a step only for the brave, IT outsourcing is
now seen as a key weapon in most companies’ armoury.
Organisations identify outsourcing as a way of winning the
battle against rising IT costs, and early skirmishes with
suppliers have been replaced by a more level playing field
with advantages for both sides.
The first outsourcing initiatives tended to assume that the
supplier knew best, with companies handing over
responsibility for large chunks of their IT infrastructure to a
third party for a period of anything up to 10 years.
Nowadays, many companies have considerable experience of
outsourcing and so are better able to negotiate a deal which
will deliver real value to their business. For their part,
suppliers have shown themselves capable of developing more
flexible and responsive solutions in what has become a much
more competitive marketplace.
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The ins and outs of insourcing: Mark Sukiennik, Orbys Consulting (July 2006)
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Insourcing, or bringing previously outsourced systems or functions back into the corporate fold,
is in fashion at the moment and is having a definite impact on the outsourcing market. However,
insourcing because outsourcing has gone wrong is a mistake.
If you are thinking of taking a business function back inhouse because of failings either in your
supplier or indeed because of failings of your own, then just pause for a minute. There is one
good reason to insource, to which we will return later. But the myriad technical issues, operational
difficulties and relationship problems that can cause companies to despair of ever having started
outsourcing are not that reason. Insourcing for the sake of it merely compounds your troubles.
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