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Many IT companies that outsource critical functions not satisfied with results

By Published on .

San Francisco—While the majority of IT companies outsource some critical function, nearly one-third have fired an outsourcing vendor in the past year, according to a new report from InformationWeek Analytics, a research service of InformationWeek.

The report was based on an online survey of 530 business technology professionals at IT companies. It found that nearly 60% of IT companies outsource some critical function, such as management, engineering or development.

More than half of respondents said outsourcing has delivered lower quality than keeping these functions in-house, and 29% said they have fired an outsourcing vendor in the past year.

The survey also found that 44% of IT executives plan to expand their use of cloud computing and SaaS (software as a service).

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