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Offshore Outsourcing World: What's making successful IT departments click
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Friday June 18, 2004 at 9:18AM - Offshore Outsourcing World Staff

What's making successful IT departments click

The more successful corporate IT departments are spending less money, employ fewer workers and implement projects better, according to a recent study by a consulting firm called The Hackett Group.

Credit some of it to outsourcing.

The study shows that "world-class" IT departments (out of more than 200 companies surveyed) are spending 23% more on outsourcing than their "median" counterparts.

Size does not matter at all and better companies aspire for lean mean IT machines. The best IT shops employ are 30% leaner than the average and according to the study, allocate people more on solving application management issues.

On the other hand, they let their outsourcing partners worry about technology infrastructure issues.

Simplicity and standardization is also a mantra among successful IT organizations. Which means they rely 50% fewer ERP systems and 29% fewer applications per end use, the study says.

They focus more on ways how technology can help make the business successful rather than snapping every high-tech tool that have 50-50 chance of being successful.

related stories, by category:

Going West to sell the East
Chinese software company tries to be like India.
Bad publicity turned good
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US law firms take a bite of outsourcing pie
Lawyers get overseas support with offshoring.
Finding the right mix
Cost savings and access to valuable skills are reasons for outsourcing.
Keeping the core alive
Sears outsources $1.6 billion in I.T work
US law firms take a bite of outsourcing pie
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Cost savings and access to valuable skills are reasons for outsourcing.
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HR outsourcing a big hit in Asia Pacific
More statistics on HR outsourcing
Going West to sell the East
Chinese software company tries to be like India.
Bad publicity turned good
No such thing as bad publicity for offshoring vendors
US law firms take a bite of outsourcing pie
Lawyers get overseas support with offshoring.
Finding the right mix
Cost savings and access to valuable skills are reasons for outsourcing.
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