BANGALORE: Global businesses outsourcing their IT-related projects may not be getting full value for their money, at a time when a weakening dollar has made contracts outsourced to countries like India, more expensive.

Many businesses may be losing control of their outsourced IT projects due to lack of related internal leadership, poor sourcing strategies, inadequate relationship building and failure to develop enough internal skills, a research report by London School of Economics, reveals. The report was compiled by a team led by Leslie Willcocks, Professor of Technology and Globalisation at LSE and commissioned by Logica CMG, an international IT and business services company with operations here.

Prof. Willcock’s report, released here, suggests that “senior managers must identify and retain key skills and competencies in their inhouse teams if they want to benefit more from outsourcing suppliers. Organisations are now prioritising short-term cost reductions over an ‘invest to save’ strategy and among the fallouts is constant renegotiations with outsourcing partners”.

By 2012, many global corporates could be spending almost 58 per cent of their IT budgets for outsourcing and this means, they need to resource more internally as well. The research identifies nine core competencies to get the best value out of outsourcing, such as leadership, business systems thinking, relationship building and informed buying. In addition, the report makes some key predictions for the outsourcing market in future.

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