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Tuesday, July 12, 2005

CIO Relationships Limit Outsourcing Success

A nationwide survey has identified that chief information officers (CIOs) are in need of ‘relationship counseling’, to help them get the most from outsourcing.  The survey commissioned by Computacenter and carried out by PMP Research, questioned 100 CIOs from banking, pharmaceutical, manufacturing and the public sectors.

The research identified that nearly 65 percent of private sector CIOs are working with a number of outsourcers simultaneously, making effective management even more of a priority.  In contrast to this, less than half 45 percent of public sector organizations had more than one outsource partner.  Post-outsourcing, less than 7 percent of CIOs in the private sector had seen significant changes to their in-house skill set, whereas in the public sector the number experiencing a change was four times higher 28 percent.

This may indicate that the public sector is developing relationship management abilities in its in-house teams, as well as giving them the opportunity to learn new skills in support of their core businesses.

“CIOs are looking for their teams to manage the overlaps and interfaces of multi-vendor relationships effectively.  It is only those organisations that do get it right who will get the most out of outsourcing,” said Ben Booth, MORI CIO.

Posted on 07/12