Outsourcing is passé - Welcome to Insourcing

According to Silicon, Boots is the latest company to join the growing mass of UK companies bringing back IT staff in-house.

Back in 2002, the high street chemist looked to cut back its £84 million-a-year IT budget to a more manageable £70 millions. But it seems that things did not go as well as expected, which compelled Boots to ask for a transfer of 100 of the original 500 IT jobs back in-house.

The news comes a few weeks after Boots announced its merger with Alliance UniChem in a bid to cut costs, especially in the IT Infrastructure, prompting commentators to say that the merger was the catalyst for the IT cut. Back in March, renegotiating the IBM IT outsourcing contract was top of the agenda and the amount Boots was trying to save was an astonishing £60 million a year.

While renegotiating contracts usually helps to save money, they can put a lot of people out of work and while some might view in sourcing as a good Public Relations exercise, one has to remember that companies like Boots are for-profit company and that if outsourcing is the next good solution, they will go for it.