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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.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.