Is IT-outsourcing starting to hurt the business? | Outsource Portfolio

Description

October 7, 2009

IT-organizations are now more than ever pressured to cut their cost. This is among others due to the perception of many business managers that IT is a cost centre which adds limited value. And activities with a limited perceived value are those which get the highest cost reduction targets.

In reality does IT add a lot of value, but the typical IT organization is not able to sell that message. It starts with the subjects IT talks about with the business. In 9 out of 10 cases is IT uses to automate manual activities resulting in a cheaper and faster business process. So using IT using to reduce cost.

The IT organization increases this perception by organization itself into functional silo’s in an attempt to increase internal efficiency. So all network engineers in one department and all application developers in another. To improve standardization ...

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