Outsourcing deals 'need expert supervision'

3rd December 2007

Although the temptation may be for firms to sign up to an IT outsourcing deal and forget about it, analysts have suggested that a knowledgeable in-house team should keeps tabs on the project.

According to a new study carried out on behalf of IT services firm LogicaCMG, a team trained to understand the ins and outs of an IT outsourcing project can help a firm get the most out of the deal and even save on costs.

"Organisations must spend to save now, by investing in the right internal skills to develop long term strategic benefit," said Leslie Willcocks, professor of technology, work and globalisation at the London School of Economics and the author of the study.

"We have found a link between the lack of investment in core in-house capabilities and the disconnect it creates between the outsourced function and the retained portion of the enterprise."

Mr Willcocks suggested that if a firm engaged in an outsourcing project does not retain some IT experts on staff there can be a lack of control over the direction it heads and issues over poor service could develop.