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89% of CTOs plan to embrace outsourcing

STX Next research has found that almost nine in ten CTOs (89%) plan to outsource software development or IT expertise in the future. This is despite the fact that 59% are not currently outsourcing, indicating that it is set for a resurgence.

The research revealed that outsourcing has experienced a lull in popularity. 46% of CTOs have never outsourced technical talent before, while 43% have done it in the past but stopped. Reasons for ceasing outsourcing include low quality work, lack of strong relationships with external partners, communication issues and a poor cultural fit. However, outsourcing still has major appeal if prospective partners abroad up their game – of those who have outsourced, 39% have done so globally, while 33% have outsourced within the same continent.