May 24, 2005
Report Shows In-House IT and IS Work Increasingly Inefficient
A recent report released by Gartner Consulting and The Yankee Group indicates that growing competition from external service providers is currently squeezing the margins in a number of large and mid-sized companies. Gartner has pointed to companies' IT departments as a particularly bloated area where significant costs can be cut. The report indicates that as the service quality achieved through outsourced IT providers improved it will be increasingly cost-inefficient for companies to retain their IT and IS work in-house. RED HERRING Reports:
“Our advice to IS leaders is that, although they have some very difficult decisions to make over the fate of their department, they need to act now as the transition will take a number of years,” Mr. Mahoney said at the Symposium ITxpo in Barcelona.
Read More: Outsourcing Gains Momentum
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