UK increases IT outsourcing

UK companies are moving more of their IT spending to outsourcing, according to a new study, which may interest international contractors, says Liberty Bishop.

The study by Computer Economics revealed that spending on outsourcing increased from 3.8% in 2008 to 6.1% in 2009. John Longwell, VP of research for Computer Economics, a California-based IT research and advisory firm, says the recession is one of the key reasons why firms are increasingly opting to outsource their IT functions.

However, new developments are also impacting on firms' decisions, he notes. "Cloud computing is a development that will result in more money being spent with outside service providers, regardless of the macroeconomic climate."

With many Americans seized by anxiety about the country's economic decline, candidates from both political parties have suddenly found a new villain to run against: China, writes The Age.

In the past week alone, at least 29 candidates have unleashed advertisements suggesting their opponents have been too sympathetic to China and, as a result, Americans have suffered, says the report.

One ad for an Ohio congressman, Zack Space, accuses his Republican opponent, Bob Gibbs, of supporting free-trade policies that sent Ohio jobs to China.

Technology outsourcing and consulting major Accenture recently announced its intention to acquire the sourcing services and business process outsourcing (BPO) services business of Ariba for a total consideration of $51 million, reports Zacks.com.

Ariba is a provider of cloud-based business commerce software, which facilitates organisations to manage costs, minimise risk, improve profits and enhance cash flows and operations. Ariba's Commerce Cloud claims to help organisations to mitigate the complexities regarding buying and selling activities and managing cash.

Under the terms of the agreement, Accenture will own Ariba's category expertise, sourcing process expertise and strategic sourcing execution resources. With this acquisition, Accenture says it will be able to enhance its sourcing and procurement consulting as well as outsourcing services.