US expects outsourcing growth
Forrester Research predicts the US IT services market will return to a growth rate of 5% in 2010, states DNA.
The report attributes the growth to the strong IT hardware demand seen in the past two quarters.
The strongest segment in IT services will continue to be IT consulting, followed by hardware support and system integration. IT outsourcing grew from $75 billion to $76 billion in 2009, is expected to hit $79 billion in 2010.
San Diego outsources desktop support
The first outsourcing bid by San Diego Mayor Jerry Sanders won City Council approval this week despite scepticism over the proposed savings and the selection process, says SignOnSanDiego.
The council voted seven to one in favour of a $1.2 million contract to outsource desktop support services to En Pointe Technologies. The services had previously been operated by Data Processing.
The outsourcing deal is expected to save the city $1.1 million over its current arrangement with Data Processing.
Postal services urged to outsource
The General Accountability Office (GOA) reports that aggressive action to increase workforce flexibility could improve the US Postal Services (USPS) financials, reports GovExec.com.
According to the GAO, the USPS can outsource certain operations if they are cost-effective.
The USPS saved $10 billion between 2007 and 2009 through workforce reductions. The GAO predicts a loss of $238 billion by 2020 unless the existing operations are overhauled.
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