74% of outsourcing companies are happy with the deal

A DiamondCluster International study of 182 IT outsourcing buyers in the United States claims the overall level of satisfaction has increased. 74% said they are happy with their IT outsourcing efforts to date and out of the 21% who terminated a deal in the last 12 months, half of those simply switched to another vendor. Only 25% of those who terminated then brought the work back in-house. In 2002 buyers expected cost savings in the region of up to 50%. Those expectations have declined to 10 to 20%.