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UK Firms still Skeptical about Cloud Technology

by: Sarah Joson

Wednesday, February 25, 2015 |

UK Companies Doubt the Cloud

According to the recent findings in KPMG’s Service Provider and Performance Satisfaction survey highlighted in a post at ITProPortal.com, UK businesses are still not confident about the cloud. Out of 2,100 deals surveyed in the report, 330 came from the UK, and it was revealed that 71 percent of the UK participants are only spending 10 percent of their total IT budget on cloud technology.

UK IT executives aired their concerns that are supposedly fuelling the unwillingness of CIOs to adopt the cloud. These include data security and privacy risks (26 percent), compliance and regulations (16 percent), as well as doubts about the cloud’s compatibility with their existing IT setup (16 percent).

The survey also discovered that even with the continuous improvements of the economy, UK firms are still cautious when it comes to committing to long-term investments. As for IT outsourcing spending in the next two to three years, KPMG found that only 43 percent intend to increase spending activity - a percentage that’s significantly lower than the 77 percent reported last year.

IT outsourcing’s purpose is evolving particularly as corporations are looking beyond cost savings. Some of the key reasons why firms are outsourcing include quality improvement (20 percent), access to skills (16 percent), and faster turnaround time (six percent).

According to Jason Sahota, Director of Shared Services and Outsourcing Advisory team at KPMG, cloud adoption is slow due to concerns about security, but he said cloud should be treated like any other outsourcing solution.  

He pointed out that UK plc should find ways to provide clients innovation by presenting it in a way wherein their worries are lessened - if not put to rest. In a nutshell, IT outsourcing providers would have to find the right balance between improvements and security.

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