Outsourcing costs sting business

Tessa Reed
By Tessa Reed, Journalist
Johannesburg, 27 Jun 2012

Outsourcing costs sting business

Businesses are being stung when it comes to outsourcing, according to a survey by privileged user management vendor Lieberman Software, SC Magazine writes.

A survey of 250 IT professionals found that 42% of respondents said costs for their outsourcing agreements were higher than originally planned, while 64% believed their IT outsourcer had actually invented projects with one ulterior motive - to inflate their fee.

According to Security Park, the study found that 71% of organisations outsource a 'significant portion' of their IT requirements.

However, outsourcing did not automatically mean an improvement in service, as just 15% said they trusted the quality of work performed by their outsourcers more than work performed in-house; 52% felt the quality of service was about the same; while 33% have less trust in the work performed by the outsourcer.

Philip Lieberman, president and CEO of Lieberman Software, says the survey results illustrate that the grass is not always greener on the other side of the IT outsourcing fence, PC World reports.

“The fact that trust in the quality of work is being eroded is a worrying trend, but, for me, the thought that work is being manufactured to inflate fees is even more of a concern.”