Are IT contractors really being fair to their clients? According to a recent survey, 77% of IT professionals working in companies that outsource work say their outsourcers make up work to get more money.
The survey, which was conducted at the Infosecurity Europe event, found that 43% of IT professionals are employed in companies that outsource a major part of their IT. 62% of respondents admitted that their outsourcing agreements cost more than they had expected and 27% said the excess was significantly higher than anticipated.
IT outsourcing is seen as a cost reduction exercise but this had led to a loss of intellectual talent and loyalty. Companies used to be able to leverage technology to make their organisation more competitive and exciting but then business process management analysts decided that each job could be fully described and farmed out to the lowest bidder.
For a while this worked, but then challenges appeared that required corporate knowledge, flexibility and loyalty to the company. We are continually faced with data security threats and need to deploy new technologies to stay one step ahead of hackers. It is virtually impossible to predict these needs or remedies in advance.
Organisations are growing increasingly frustrated with predominantly outsourced IT departments. Companies that intend to outsource IT functions must evaluate their outsourcers’ performance across appropriate criteria, not just cost, but data security, resiliency and transparency, said Philip Lieberman, the CEO of the Lieberman Software Corporation.
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