IT Outsourcing: 3 Reasons Your Vendor Won’t Innovate

IT outsourcing providers want to innovate, but they can’t if their IT department customers can’t articulate what innovation from outsourcing looks like.

By Stephanie Overby on Wed, May 05, 2010

CIO — Internal IT organizations choose to outsource for any number of reasons: to cut costs, improve service, increase efficiency. Increasingly, they’re seeking innovation from their IT outsourcing partners, even though many don’t have a clear picture of what innovation means in the context of outsourcing. Consequently, those IT departments are not getting much innovation from their service providers.

According to a 2009 Forrester Research survey, 38 percent of IT outsourcing customers said lack of innovation or continuous improvement was their greatest challenge with existing vendors—up from 33 percent the previous year. (Also see CIO’s Exclusive Outsourcing and Innovation Survey.)

For more, read CIO.com

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