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Enterprise Systems Releases New IT Study "Outsourcing: Who, Where, and Why"

Published
  • November 08 2004, 1:00am EST

Enterprise Systems, a leading provider of real-world business and technology information for managers of large, high-volume computer systems and infrastructures, released a report detailing the many motivations, strategies and effects pertaining to outsourcing.  "Outsourcing: Who, Where, and Why" takes an in-depth look at the most likely jobs to be outsourced, the reasons behind outsourcing, and the size and duration of outsourcing contracts.  It also discusses the human costs and controversy related to this highly charged topic.

Key findings in this report include:

  • One-third (33.4 percent) of companies surveyed are currently outsourcing projects; 42.8 percent are evaluating outsourcing providers; and 23.9 percent either do not know or do not plan to outsource.
  • Reducing and controlling costs (25.5 percent), gaining access to IT resources unavailable internally (16.5 percent) and freeing up internal resources (16.1 percent) are the top reasons respondents sited for outsourcing.
  • The vast majority of companies are not sending their jobs offshore; over 70 percent of companies that outsource choose a domestic provider.
  • The most common size of an outsourcing project is under $100,000; the most popular contract length is one year or less.
  • Over half of survey respondents say that no positions were eliminated in their last sourcing project. Among companies that did eliminate positions, up to 22.6 percent of displaced employees either transferred elsewhere in the company or were able to obtain a position with the new service provider.
  • Application development was the top recently outsourced IT project among respondents (26 percent), with Web site development/management coming in a distant second (12 percent).

For more information or to request a complete copy of this report, please contact Meighan Berberich, Mberberich@101com.com.

 

 

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