The advantages and disadvantages of outsourcing IT services

The advantages and disadvantages of outsourcing IT services

Outsourcing a range of features has become commonplace for businesses around the world. According to the Arvato UK Outsourcing Index, the value of private sector outsourcing contracts in 2017 was £ 4.9bn, an increase of 9% over the previous year.

This particularly applies to the outsourcing of IT functions, which accounted for 73% of the British outsourcing industry in 2017. This volume doubles again every year, more than twice as much as outsourcing. in 2017 (£ 3.8bn) than in 2016 (£ 1.7bn).

Under the plan, 22% of UK companies currently outsourcing some IT functions are actively planning to bring them home in the future.

“Outsourcing companies share their ability to support digital transformation, cloud adoption, and automation projects, and they’re likely to be offered more often as companies improve the integration of cloud computing – technology in their global business,” added Pepper.

Outsourcing of the public sector
The UK government and the public sector are changing their relationship with IT outsourcing. UK councils are significantly reducing their use of subcontracting with private providers in favor of job reintegration.

This is due to the combined strengths of a historically mediocre service standard, lack of contract flexibility and industry volatility, such as the collapse of the largest state-owned Carillion in January 2018.

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