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IT outsourcing strategies 'becoming more intelligent'

7 June 2012

Businesses are starting to consider more complex and sophisticated issues when deciding their IT outsourcing strategies, according to an expert.

Brian Robinson, research director for business and IT services strategies at outsourcing analyst firm HfS Research, told CIO magazine that although the number of IT outsourcing agreements continues to increase, the average size of each deal is falling.

This is because in the past, companies would simply choose the provider offering the lowest price or the biggest scale, whereas nowadays this process has become far more flexible, thanks to the advent of cloud computing, virtualisation and automation.

For example, businesses may now wish to set up their own virtual assets, environments and solutions, meaning they may only wish to tap into service provider expertise.

Mr Robinson said: "The market is starting to realise that it is about engaging the provider with the best overall value proposition, as opposed to the biggest - or cheapest - provider."

Last month, a report from Gartner revealed that worldwide IT outsourcing revenue rose by 7.8 per cent in 2011 compared to the year before.

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Categories: Functional Practices, Program & Project Management

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