IT Outsourcing UK – 2012 Scenario


The year 2012 is a witness to a wider adoption of ‘outsourcing’ formula by the IT software firms in the UK. More and more of the UK companies are outsourcing their works to dump their non-core activities and focus on the most essential business aspects. The target destination of outsource work can be divided into onshore, nearshore and offshore categories. Nearshore outsourcing is most popular for the UK companies followed by offshore outsourcing. And nearshore refers to a destination within the UK or 2 time zones away from it. On the other hand, offshore means the destination is more than 2 time zones away from the UK.

After recession, IT outsourcing UK is undergoing a new phase. The companies are more focused on cost cut but don’t want quality to suffer. They are considering top three factors before offsourcing to other countries. These factors include availability of a large pool of talent, proficiency in English and economic stability of the country. However, when it comes to bonding with an IT partner on offshore, the decisive factors in making a choice include recommendation from peers, realistic, flexible as well as unique business model and sensible HR scalability.

When it comes to finding a reliable IT partner, most of the IT outsourcing UK companies heavily rely on peer recommendation. A little more than 10 percent of the companies search for their partners through a publicly released RFI/RFP/RFQ. According to the survey report, most of the outsourcing IT houses in the UK is facing the challenge to overcome the communication gap between the IT service providers and the buyers. This year, 50 percent of the companies - responded to the survey - have admitted to have outsourced IT solutions through their ‘own development model’. 

Near about 45 percent of the IT outsourcing UK survey respondents have confessed to have paid 25 percent more than the estimated budget in the contract and this way, they have managed to save only 25 percent on their operating cost. However, that does not make the companies go against the tide of outsourcing. In fact, 80 percent of the UK companies are still importing IT service from offshore and will continue to do so in coming days, the experts opine.

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