IT outsourcing could top US$357mn this year

Outsourcing of IT services could reach US$357mn in Mexico in 2005, Milenio.com reported, citing information from research consultancy IDC México. The main reason for outsourcing is to lower costs, but it is also seen as useful because of the strategic advantages it gives over competitors as it allows companies to dedicate more time to high-impact activities, said IDC México's research director for IT and vertical markets, Alejandro Floreán. New trends show that companies see outsourcing as a way to increase knowledge and provide access to more advanced technologies than could be acquired by in-house operations, Floreán said. Although outsourcing is currently utilized mainly by medium and large companies, its usefulness is being evaluated by other organizations such as government agencies.