Firms must invest in staff for IT contracts to work

28 November 2007
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28 November 2007 | Antony Barton

Businesses must develop the skills of their project management teams to prevent contracts with their IT outsourcing supplier falling into disarray, according to new research.

A report issued today by technology firm LogicaCMG, with research conducted by the London School of Economics, reveals a lack of strong internal leadership and project management on IT projects means some companies experience inadequate service and constant contract renegotiation.

Problems are compounded by a widespread focus on quick cost reductions rather than investment in staff skills. Contract management groups are often too small to provide all the necessary technical and "soft" skills for adequate management.

Martin Blackburn, chief executive global service delivery at LogicaCMG, said in a statement that many organisations often under-invest in core capabilities due to cost.

He added: "While considerable attention has been devoted over recent years to the potential benefits of IT outsourcing, there has been little discussion of what kind of retained team organisations require to manage their outsourcing supplier."

The report can be downloaded at the link below.

SMnov2007

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