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The Current Condition of Global IT Outsourcing

by: Sarah Joson

Wednesday, September 19, 2012 | Outsourcing News |

Results from UK IT outsourcing contracts examined

An article posted at ComputerWeekly.com highlights crucial information from KPMG’s annual UK IT Service Provider Performance Study. Six hundred thirty (630) UK IT outsourcing contracts amounting to £14bn were examined and 230 firms with a total IT budget of £30bn were surveyed.

The study denotes that 76% strongly consider outsourcing IT services and cite cost efficiency as the most crucial factor, along with access to skilled workforce and flexibility. However, only 19% said they will outsource more, which is less compared to last year’s 25%.

Included in the report were the developments in delivery models and benefits of proper insourcing, nearshoring, and offshoring practices.

Thirty percent of respondents came from financial services firms, 58% of which stated they will outsource more next year. Furthermore, 90% of public sector organizations are outsourcing IT, 29% of which procure IT services abroad.

Other segments in technology outsourcing like application development and management, infrastructure management, and network services were also analyzed.

According to KPMG’s Technology Shared Services and Outsourcing Advisory Head Lee Ayling, technology and outsourcing are fuelling UK businesses, and in a rapidly evolving industry, IT providers should be able to accommodate new demands and trends.

Nonetheless, UK businesses are still anticipated to spend for IT services, but providers shouldn’t be complacent as this could change over time.

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