The People Problem

26 Jun ’05

Nicholas Carr writes on the effect that the difficulty and high cost of “finding, recruiting, motivating and holding onto skilled IT staffers” is having on driving IT outsourcing:

The CIO of one mid-sized company that recently closed down its data center and shifted its operations to an applications hosting company told me that while the move saved the firm about 20% of its IT costs, the real motivation lay on the people side. Finding, recruiting, motivating and holding onto skilled IT staffers had just become too much of a hassle. Another CIO, of a European financial services firm, said that he believes the best IT talent will inevitably move to the vendor side, where they have good prospects for advancing their careers. On the user side, he said, IT people no longer have many options to move up.

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