More firms are 'insourcing' IT

Outsourcing is no longer seen as a cure-all for expensive IT or business process problems, say experts.

The Prudential's recent decision to consider bringing some of its IT operations back in-house (Computing, 31 March) follows other high-profile moves away from external service provision.

Some 64 per cent of firms have already brought an outsourced service back in-house, according to consultant Deloitte.

Richard Punt, head of Deloitte's strategy practice, says the high level of insourcing can in part be attributed to poor management decisions.

'While the popularity of outsourcing grew remarkably quickly, customers' businesses weren't growing to the same extent,' he says.