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Offshore Outsourcing World: Many European IT Directors Don't Outsource
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Tuesday September 28, 2004 at 11:54PM - Offshore Outsourcing World Staff

Many European IT Directors Don't Outsource

Synstar recently conducted a survey of 700 IT directors across Europe to determine how many of them outsource their entire IT processes.

An overwhelming 97% said they plan to keep their IT strategy management in-house.

The limiting factors are said to be "potential cost control, visibility and supplier management problems."

However, the majority (58%) thought that outsourcing other selected responsibilities is the most effective way for a business to save costs whilst improving performance.

Respondents cited user support, business continuity, networking, data management, infrastructure support, and maintenance as areas where outsourcing can deliver benefits such as cost control (14%), guaranteed service levels (24%), access to a wider pool of skills (29%) and greater visibility (9%).

For 28%, the principal benefit of outsourcing selected tasks to a managed services provider is to free up internal resources.

Experts believe that offshoring whole IT management processes will benefit large firms. But it seems European IT directors prefer to exercise caution.

Russell Flower, Synstar director of managed IT services and business availability, said, “Outsourcing selected functions to a third party managed services provider can improve performance and cut costs, but unlike wholesale outsourcing, it does not take strategy and control away from the business.”

This incident coincides with European economies facing a pressure to cut down on offshore outsourcing, with France being one of offshoring's most vocal adversary.

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