Costs not key in outsourcing

Companies should not view outsourcing as a way to slash their IT budgets, according to leading IT directors attending the recent European Technology Forum.

Sainsbury's chief information officer (CIO) Maggie Miller argued that firms should consider outsourcing IT for improved flexibility and more features, but cutting costs should never be the driving force.

"Most of us will be faced with accusations that our IT costs are too high, but to see outsourcing as a way of cutting costs [ignores] business logic," she said. "There are some superb reasons to outsource, but cost isn't one of them."

Whether outsourced or not, IT must form part of overall business strategy and not be a separate entity, said Miller. "IT is not just about technology," she said. "A CIO's role is in demystifying the process and we have an obligation to be flexible and respond quickly to strategic needs."

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