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Outsourcing No Longer 'dirty Word' as Tech Spending Rises

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The Cleveland Police Authority in Northern England is paying Groupe Steria SCA to help manage the control room of the 2,200-strong force, allowing Chief Constable Sean Price to "concentrate on policing." Price and other first-time customers seeking to simplify back-office operations or upgrade rickety computer systems are helping information technology services companies grow faster than the economies they serve.

"Outsourcing used to be a bit of a dirty word," Price says. "I don't think that's the case anymore."

Prominent IT service companies have raised their outlooks this year, or have signaled rising demand from corporate clients. The companies are gaining as corporations revive spending postponed by the global economic crisis while also looking to cap costs. "IT is doing better than the economy," says Francois Enaud, chief executive officer of  Steria. "The crisis forced companies in many industries to reconsider the way they do business and their cost model."

From Bloomberg
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