survey, outsourcing, said

Survey finds outsourcing budgets continue to rise

In a survey of top decision makers on corporate outsourcing policies, 59% said they expect to increase their outsourcing budget by 20% or more in the next 18 months.

This was one of several findings from last month's patniconnect 2004, the inaugural customer forum for Patni Computer Systems, one of India's largest IT services companies.

Patniconnect brought together over 100 IT and business leaders from Patni's customers around the world, along with pre-eminent industry analysts and professionals who presented valuable perspectives on the future of the global delivery model and its profound impact on IT strategy.

A sampling of other findings from the survey include:

-54% said that the public perceptions of outsourcing has had no impact on their decisions to take advantage of outsourcing services; 30% said the only impact was on their ability to speak publicly about their initiatives; 16% said the debate made them reconsider their outsourcing strategy, but none said that it forced them to postpone outsourcing initiatives.

- Regarding the US elections, 43% felt that a change in the administration would have no effect on outsourcing policies; only 2% felt a change would
negatively effect outsourcing.

- 41% said they expected a 20-35% increase in their outsourcing budgets over the next 18 months; 18% expected an increase between 30%-50%; 13% expected an increase of 50% or more; only 8% said they expected no
increase.

- Lost knowledge was the top workforce-related risk, cited by 43% of the respondents. Mismatched roles and competencies were selected by 38%. Only 8% cited worker backlash as the top risk.

- Despite the fear of lost knowledge, only 35% said that they always employ a formal change management program. 33% said they never utilize such a program, while the other 33% said they only sometimes use it.

- Poor internal project management skills was the top challenge in outsourcing, cited by 49% of respondents.

- 34% said that domain expertise was the top factor in choosing an outsourcing partner; only 16% said that the lowest price was the No. 1 factor.

Patniconnect 2004 was keynoted by Dr. Glenn Hubbard, former chairman of the White House Council of Economic Advisors, and Mr. Harris Miller, president of the Information Technology Association of America (ITAA). The three-day conference was held last month on Hilton Head island, South Carolina.

"The cornerstone of Patni's success over the years has been the strength of its partnerships with its customers," Narendra K. Patni, Chairman & CEO said. "We are committed to add value to our customers by consistently providing world-class services through an efficient, cost-effective offshore model and flexible resource pool. patniconnect 2004 provided an exclusive and dynamic setting for the exchange of ideas and perspectives and for incisive interactions with our customers."