Productivity 'could drop during poor implementation of outsourcing'

If businesses rush into the outsourcing of small business management software, it could result in a drop in productivity, it has been stated.

Compass Management Consulting revealed that economic pressures have led to the galvanisation of software portfolio movement, such as resource planning and scheduling software.

However, many people do not consider that the replacement of old systems from the turn of the millennium can lead to long-term drops in performance if the outsourcing of software is hurried in a drive to make short-term savings.

Nigel Hughes, a representative from Compass Management Consulting, said that a number of major corporations across the world have already made advances in replacing outdated technology in the recession to streamline their operations.

He continued: "Complexity of the application environment is a major driver of overall cost escalation in IT and 2009 is the best chance since the year 2000 issue to make radical change."

Global enterprise software revenue is thought to reach $222.6 billion (£150.09 billion) by the end of 2009, according to Gartner.

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