In our previous blog, “Outsourcing: it’s all in the mind”, we mentioned how Gartner’s prediction in 2008 (which insisted that IT services would continue to grow inspite of recession and protectionism) was true as far as Europe was concerned. Three years later, that prediction still rings true, especially for CIOs in America.
According to this year’s Annual survey by Society of Information Management (SIM) of over 275 companies on IT budgets and technology trends, 65% of them continue to outsource some part of their IT functions. In fact, 83% of the respondents have either kept the same IT budget or increased it (compared to only 65% the previous year).
And where are they sending their outsourced work to? More than 58% of them send it to India.
However, the best part of this survey is that CIOs no longer see IT as a cost reduction department. In fact, reducing costs seems to be at the bottom of their Top 10 list – aligning themselves to business needs is their number one priority. So much so that some of the CIOs are taking this to the next step – actually building their own software to create a competitive edge for their businesses!
And at Suyati Technologies, we applaud this trend. Heartily! We believe that outsourcing is not (and should not be) about cost or labor arbitrage. It is about gaining competitive advantage. It is about focusing on your core business skills. It is about aligning your business needs to decrease time to market for your products and services. With our shared-risk and transparent-cost model, CIOs now can take advantage of Suyati’s Dedicated Global Teams to continue to innovate. Want to know more?