New regs will drive outsourcing in 2007

The introduction of new business regulations will increase outsourcing in the UK over the next 12 months.

According to predictions for 2007 from the National Outsourcing Association (NOA), regulations due to come in - such as MiFID in the financial sector - are going to play a key role.

With outsourcers geared up for these regulatory changes, the NOA predicts user organisations will often choose to outsource rather than invest internally.

As well as this new driver, the role of those working for the CIO will change in 2007, said the NOA. IT departments will have to focus more on business requirements and dealing with IT suppliers.

Martyn Hart, chairman of the NOA, told silicon.com: "IT is becoming much more business orientated."

RE:Viewing 2006

Find out more about MiFID in our look back at the year in FS.

He explained that "commoditised applications" such as email are becoming more sophisticated and user friendly, meaning there is less need for specialist internal IT staff.

The role of internal IT staff could evolve to see them become embedded in individual business units, communicating certain tech needs back to a central IT team.

The predictions also suggest business process outsourcing will continue to catch up with IT outsourcing in the UK in terms of spending.