Codestone

Category: Category: Support & Managed Services

The public sector may not be moving as much of its managed IT services to the private sector as previously planned.

According to leaked documents obtained by the BBC, the government will be scaling back the number of services it outsources.

"Wholesale outsourcing" will be politically "unpalatable", the ministers' documents reportedly claim.

Instead, outsourced IT and other managed services may be moved to charities, social enterprises and so-called mutual organisations.

Outsourcing was supposed to feature heavily in the government's bid to reduce costs in order to lower the UK's budget deficit.

A recent report by Ovum revealed that even though outsourced IT is becoming a more prominent trend, companies are choosing to keep their finance and accounting operations in-house.

It showed that many chief financial officers see no need to outsource these to external firms, even though this is largely proven to be more efficient for their business.

Posted by Shannon Well