The level of outsourcing activity remained fairly steady over the past couple years, but at the same time there has been an increase in the volume of insourcing, analysts say. More companies are rethinking their IT service provision and taking some work back in-house, reports Stephanie Overby at CIO magazine.

Typical reasons for terminating part or all of an outsourcing deal over the past year include a desire for greater control over IT, poor quality of service and failure to achieve business goals. However, some IT executives also discovered that their "generalist" outsourcing providers were working in areas beyond their core competencies and did not live up to expectations, according to David Rutchik, partner with Pace Harmon, an outsourcing consulting firm.

For some companies, backsourcing is a temporary fix while they look for new outsourcing contracts, Rutchik said. Although taking back some IT tasks can result in considerable savings, it can also be expensive and complicated. Two areas ripe for successful insourcing are network management and end-user support.

For more:
-see Stephanie Overby's article at CIO

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