Cost-cutting drives outsourcing growth

New research indicates that companies providing IT products and services will continue to increase their use of outsourcing agreements in order to lower overhead expenses. According to a report published Monday by Evans Data, which culls information from developers at tech companies, 33 percent of businesses surveyed intend to increase their use of outsourcing during the next year, while only 6 percent said they are planning to decrease their number of outsourcing pacts. Outsourcing involves the process of transferring work to an outside company rather than keeping it in-house. In terms of overall workload, 45 percent of respondents to the Evans survey said they outsource less than a quarter of their development operations, with only 7 percent reporting that they farm out better than 50 percent of that sort of work.