Australia's Tech Outsourcing Continues

In the midst of the all reported “insourcing”in the US, it seems that the land down under is not convinced. In Australia, few large scale moves have been made to bring back outsourced services onshore. General Motors' decision to bring back IT in-house is a rare example in the country.

ITNewcom conducts an annual IT outsourcing study that analyses IT spend, technology trends, sourcing trends, and supplier performance. The benchmarking and consulting firm interviewed 60 executives from top IT spenders in Australia about their outsourcing intentions.

The study found that 75 per cent are already outsourcing their applications, and 85 per cent are outsourcing some of their infrastructure. CIOs and Business leaders are outsourcing to gain resources, cost savings, and scalability.

According to ITNewcom research director Scott Stewart, “These totals are likely to increase as the study reveals that 43 per cent of organisations intend to outsource more applications services and 40 per cent intend to outsource more of their infrastructure.”

The agencies from the public sector is at the helm of this demand with a greater intention of outsourcing. Offshoring is now being considered to outsource more services. Recently, the Queensland government is reviewing a recommendation from its commission to outsource government services.

It is true that insourcing has gotten a lot of buzz lately, but founder of IT research firm CapioIT Phil Hassey said it generates more noise than it can justify. He does agree that it works for some organisations but it's “certainly not an overwhelming strategy”.