IT outsourcing evolves beyond original ideas

By VAR_Staffing
In Channel
November 13, 2012

VAR_Staffing / VAR Staffing

Despite a change in philosophy and practice, outsourcing is still considered a dirty word around the water cooler and in boardrooms across the corporate world. The term was tossed around frequently during this year's presidential campaign, which came to an end last week, and there was a consistently negative stigma attached to it.

A recent survey from HfS Research found that 63 percent of IT leaders would like to eliminate the term "outsourcing" when describing third-party vendors, while 68 percent of those service providers also want to do away with the designation.

Stephanie Overby, a contributor to, interviewed Cliff Justice, a partner in in KPMG's Shared Services and Outsourcing Advisory, about this topic. According to Justice, outsourcing, like many invented terms, has evolved to the point that the original terminology no longer encapsulates what it does anymore. While companies are still looking to the solution for key reasons like staying cost-effective, decision-makers are considering much more than just the basic benefits.

"Cutting costs is very much a driver," Justice said. "However, companies are demanding more value from third-party services, such as the ability of the provider to partner and move business goals forward. That's a big change from the way it was five to 10 years ago."

He goes on to say that service providers need to evolve their strategies and skills to become a leader in the industry and not a run of the mill consultant. Innovation and "business first" solutions can make that happen and provide IT Principals with more of a go-to resource. VARs and MSPs that have partnered with VAR Staffing can stand above the competition and offer the solutions that today's tech-savvy organizations demand.

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