Aust companies looking at offshore outsourcing: HotHouse

A recent survey has found that more than 20 percent of respondents were considering or recommending offshore outsourcing.

A recent survey has found that more than 20 percent of respondents were considering or recommending offshore outsourcing.

The survey, carried out by marketing technology company HotHouse, found that 23.3 percent of the companies surveyed were considering or recommending offshore outsourcing.

According to a statement from HotHouse, the key drivers were costs and profitability, business model, and availability of human resources.

Simon van Wyk, managing director at HotHouse, said globalisation had encouraged many organisations to re-evalute their business model, to try and enhance profits and performance.

"The IT industry is quite mature, but for a mature industry it's surprising more projects are not fixed price. Outsourcing can give an organisation some certainty about the commercial outcome."

However, van Wyk warned there were also risks in offshore outsourcing.

“It is crucial to be extremely rigorous when selecting an outsourcing partner," he said. "Visit their premises, check their references, perhaps do a pilot programme first. Outline your productivity expectations, the response time you believe is feasible, put measures in place for performance and consequences for failure. Clearly define the scope and requirements of the work."