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Gartner: Most IT outsourcing deals focus on cost

17.03.2006
Strategic IT outsourcing can be an integral part of an organization's long-term business success, but a new survey by Gartner shows that the majority of organizations worldwide are still focused on tactical IT outsourcing to achieve short-term, cost-focused objectives.

During the second half of 2005, Gartner conducted a global IT outsourcing survey in North America, Western Europe and Asia/Pacific, in which a total respondent base of 945 individuals discussed outsourcing practices, issues and challenges.

IT outsourcing consists of data center, desktop network, and enterprise applications outsourcing.

According to the survey, "controlling/reducing operating costs or improving efficiencies" was identified by more than half of the respondents in each region as the primary value they expected to receive from IT outsourcing.

Efficiency deals are focused on cost control and, over time, cost reduction with the goal of maintaining consistency in service delivery.

The survey found that fewer organizations focused their IT outsourcing initiatives on accelerating or improving business outcomes, called enhancement deals, or significantly improving or altering their competitiveness, referred to as transformation deals.