35 Marketing Trends found for Human resources / Outsourcing

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Marketers Reject Tech Outsourcing, Opt for Cloud or In-House

Trend Summary: Reversing years of offshore outsourcing, many chief information officers are moving technology functions back in-house and to cloud providers.

Wall Street Journal blogger Clint Boulton reports that a growing number of chief information officers in major multinationals are moving their technology functions from offshore facilities to cloud providers and in-house facilities. The rationale driving this trend appears to be a mix of cost factors and a shift in corporate ...

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... attitudes toward vendor-hosted cloud software.

In an article earlier this week the WSJ reported that cost is also also a major factor for deserting outsourcers, citing as an example UK-based pharmaceutical giant AstraZeneca which expects over the next two years to halve its previous annual outsourcing spend of $750m, as the company shifts toward cloud software.

To this end, AstraZeneca CIO David Smoley has hired more software engineers to build custom software and implement cloud software in a bid to to enhance collaboration, service desk, human resources and other services.

However this trend is far from universal. IDC analyst David Tapper warns that companies quitting offshore outsourcing in favour of in-house or cloud IT facilities, are likely to see their costs “go way up.”

He also believes that although outsourcing from the US and Europe to offshore facilities in lower-cost countries such as India and Russia is much cheaper than in the US, Wall Street analysts are likely to savage companies whose earnings reflect sharply rising expenditures.

Read the original unabridged BlogsWSJ.com article.

[Estimated timeframe:Q3 2015 onward]

All data sources are attributed with links to the original insight. The insight is then summarised and, where appropriate, enhanced with additional information.

Source: BlogsWSJ.com
MTT insight URL: http://marketingtrendtracker.com/article.aspx?id=6672

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