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Study: Contracts Paralyze IT Executives

by: Karen Cayamanda

Thursday, July 4, 2013 | Outsourcing News |

A new study done by Alsbridge, an independent sourcing consultancy firm, revealed that 38 percent of the 250 senior IT executives who took part in the survey feel they are "stuck in the past" as their IT outsourcing (ITO) contracts thwart growth and development opportunities.

Also, 35 percent of the respondents, who are from Europe’s developed ITO markets namely UK, Holland, Switzerland, and the Nordics, said their current delivery models hinder their plans of adopting new technology.
John Sheridan, Alsbridge’s director and head of ITO, said today’s technology provides numerous benefits for businesses, but rigid contracts hinder innovation and integration of new ideas. Moreover, unyielding IT contracts are stunting the growth of businesses and are holding businesses back.

Meanwhile, 54 percent of IT leaders are planning to update existing contracts to comply with the tech requirements of the business and 46 percent consider technology as a crucial factor when selecting an IT provider. Meanwhile, 34 percent are thinking that promotion of cost-saving tools and technology will be repressed by suppliers as these will affect their sales.


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