As have so many of our surveys, our cost management survey shows that IT outsourcing is usually not an effective way to reduce IT costs.
Only 15% have found it results in large savings, while 45% found it only produces minimal savings. (The other 40% do not use outsourcing.)
That 1-in-4 ratio is in the bottom quartile of the all the ways companies attempt to reduce IT costs.
Need more evidence that outsourcing usually disappoints those who turn to it to save money?
Our March 2007 outsourcing survey found:
* 68% say outsourcing is overrated as an IT cost-cutting strategy.
* 67% say the total cost of using domestic outsourcing vendors has been as or more expensive than doing the same work in-house.
* About half (48%) of companies below $1 billion say the same thing.
The only group that, in most cases, save money (or at least don't lose money) by outsourcing are large companies using offshore outsourcers.
