Spending Cuts may be achieved through Out-souring or back office consolidation

Sarah Burnett, a senior analyst at Ovum, said that \”Demand for off-shoring will grow as a result of the government\’s negotiations with existing IT suppliers to deliver the same for less. Off-shoring is one way for suppliers to deliver the requisite cuts in prices.\”

The Director at Burnt Oak Partners, Robert Morgan, said that “off-shoring is absolutely not the only way to meet targets. The waste is within the old system and it can be consolidated. The removal of duplication across departments through shared services is an attractive option. You can take out 80% of costs if some back offices come together. Departments always hire too many people upfront for projects and often end up paying many for twiddling their thumbs. Also, you cannot send applications to a country that does not have a solid data protection act.\”

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