Cost Reduction Thwarts Innovation

A survey conducted recently by Quint Wellington Redwood, the independent management consultancy dedicated to solving IT-related organizational issues, reveals that for 75% of companies, cost reduction is still the most compelling reason for IT outsourcing. However, outsourcing to reduce costs has a negative impact on commercial innovation. The survey actually shows that too sharp a focus on cost reduction is a clear impediment to innovation. Other findings are that the outsourcing market is continuing to mature and that companies are tending to become more selective in their outsourcing.
The major role in outsourcing still played by cost reduction is the most striking outcome of the Quint Wellington Redwood survey. 75% of companies still view outsourcing as the de View the rest of this article