Financial Times FT.com

Outsourcing is more than just saving money

By Kim Thomas

Published: May 9 2007 11:36 | Last updated: May 9 2007 11:36

Large organisations have grown used to outsourcing their IT function to a single supplier. This supplier not only manages every aspect – software development, infrastructure, networks, help desk – but also innovates at the same time. And all for a lower price than could be achieved in-house.

However, a new report argues that this model is on the way out. According to sourcing advisory firm Morgan Chambers, businesses in the UK – although the same issues apply everywhere – are facing “outsourcing turmoil”, with nearly £7bn worth of deals up for renewal by March 2008.

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