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Report Reveals Growth in IT Outsourcing

by: Sarah Joson

Monday, August 24, 2015 | Outsourcing News |

IT research company Computer Economics released a new report called "IT Outsourcing Statistics 2015/16" where it was discovered that spending on IT outsourcing has grown consistently with the IT operational budgets across the globe.

The report also found that companies utilize outsourcing to reduce costs, preserve capital, improve operational flexibility, reduce management overhead or rapidly deploy new capabilities, and increase service levels.

The survey conducted on 132 IT organizations in the US and Canada also declared that outsourcing is used to boost in-house operations without having to share long-term risks with the provider, or having to spend on large capital investments. The entire operation is anchored on the decision of IT executives, who are also expected to control and evaluate the process so that they are ensured that they will reach the tactical and strategic objectives.

Growth in IT outsourcing spending

The study showed that large companies that have IT operating budgets of $20 million and above are leading the growth trend as they are seen spending 7.8 percent of their IT budgets on outsourcing. The top processes outsourced are help desk and web/e-commerce functions.

Meanwhile, cost-reducing opportunities are seen in disaster recovery and desktop support segments of the IT sector, and outsourcing IT security and web functions has potential in improving a company’s overall service.

Software-as-a-Service has also grown rapidly wherein 65 percent of the respondents said they outsource application hosting and is the most outsourced function found in the report. Organizations also indicated that they are planning to increase the amount of work they are outsourcing.


Source:
http://www.scmagazine.com/

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