The good news? Outsourcing is big business. The bad news? Outsourcing is big business

The good news is that outsourcing is big business. According to the Business Services Association, there are now 340,000 people working in IT outsourcing and it contributes £24.7bn to the UK economy.

But here's the thing: one raison d'etre for outsourcing is that it is cheaper and more efficient than keeping things inhouse. This suggests to me that while the figures for IT outsourcing employment and revenue are impressive, they would probably be higher if the companies involved had continued to do the work internally. If they weren't, people might start to wonder why people would choose outsourcing in the first place.

This was first published in May 2011

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