Is outsourcing on its way out?

A recent article in ComputerWorld highlights a growing trend it is seeing across several different industries. “Outsourcing, adieu: Companies retake the reins on IT services,” was posted July 18. As an IT outsourcing organization, we at EDGE found it a very interesting read.

The article quotes Charles Green, A Forrester Research analyst who focuses on sourcing and vendor management, who says he sees “an ongoing level of dissatisfaction with outsourcing.” He quotes Forrester’s 2012 services survey of approximately 1,000 IT services professionals, where nearly half of the respondents listed “poor service quality” as a challenge and 32% stated they were looking to bring work back-in house.

The article highlights some other issues that may be driving companies to bring technology work back in-house – large-scale decision-making outside of the organization, lag in technology, and staffing challenges.

Outsourcing isn’t dead, but its place within an organization is changing. Outsourcing deals are changing to be shorter in duration, with an narrower focus, and are managed more closely.