Outsourcing Doesn't Save Money

TechEGrl writes: A new report from CIO Insight says that for most companies, outsourcing costs money, not saves it. "That's certainly true in regard to domestic outsourcing: It usually costs more to use a domestic outsourcer than it is to perform the same work in-house. Even offshore outsourcers fail to save money for their smaller clients much of the time. That means most large companies — and many small companies — are often disappointed when they aim to save money by outsourcing. When IT executives do consider their companies to be successful at outsourcing, it's usually because they are achieving other important benefits, such as freeing up management time."

While outsourcing, offshoring and even insourcing are all on the rise, the report says that fears of IT layoffs due to outsourcing have declined by roughly 7 percent. The study surveyed 400 IT pros.