N2Nconsulting produce report showing reducing demand for foreign I.T. outsourcing

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British companies are considering keeping IT work, that would normally be outsourced to countries like India, in the UK, because of fears about poor quality results and hidden costs.

In 2013, IT work, that has in the past been outsourced to countries like India, will be kept in the UK, claims an article published by n2n Consulting ( http://www.n2nconsulting.com/2012/10/18/uk-companies-to-cut-it-outsourcing-abroad/ ). It argues that recent high profile incidents involving IT failures, such as the one this summer at The Royal Bank of Scotland (RBS), when the installation of new software, led to the bank's computer system failing, leaving its customers unable to access their accounts, have led companies to seriously question their outsourcing strategies.

Jack Wallen of techrepublic.com highlighted 10 problems that companies commonly face when outsourcing IT work abroad in an article in January 2012. These included delays in responding to computer system problems and the difficulties in managing out side companies in foreign countries. He argues that this can result in organizations actually losing money by sending work abroad, rather than saving it..

Analysts such as Robert Hillard of Deloitte Consulting believe that in 2013, businesses will aim to bring more IT work back in house in the UK, as well as adopting more flexible contacts with providers abroad.

According to the report outsourcing companies in India are already feeling the effects of this, with the countries second biggest company in the sector, Infosys, reporting a 2012 third quarter decline in revenue to 2.9% from 16.7%.

The article comes to the conclusion that in the future organizations should be much more careful when deciding what IT work to outsource abroad and aim to keep key parts of it in the UK.

    "Recently, we have seen a trend for companies to be much more careful in their outsourcing abroad and want to keep key IT services in this country, where they can be better managed".

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Edward Bennett