Knowledge Work

Outsourcing may be commonplace, but it continues to confound IT executives’ expectations. Take the common myth that companies outsource to save money. Not only is this not true in half the cases, but our survey shows that most companies aren’t saving money by outsourcing.

And that’s not the only surprise: Insourcing and outsourcing, though polar opposites, are both on the rise. Companies spend more on offshore vendors than domestic ones, despite problems with quality and delivering return on investment. Dissatisfaction with outsourcing vendors is widespread, yet most of the 401 IT executives who took our survey blame their own companies most of all for the disappointing performance of their vendors.

CIO Insight: Outsourcing Does Not Save Money