Almost half of UK companies (46%) outsource parts of their IT
department, according to a study by market research firm Vanson
Bourne.
The findings, from a survey of 100 UK IT directors, show that
outsourcing is fast becoming the standard way for firms to run
IT.
Companies, however, are becoming more selective over which parts of
their IT they outsource, the survey found. The main reasons IT
directors choose not to hand over services were concerns about
entering into a long-term contract and the perception that
outsourcing services are unreliable.
Those that outsource their entire IT departments are still a small
minority with just 11% saying they had done so.
Selective outsourcing is the hottest trend in the market. One in
five companies (21%) outsourced the running of specific business
applications, while one in seven (14%) outsourced the running of
their network infrastructures.
The survey results challenge the belief that outsourcing is the
preserve of large, multinational corporations. Larger companies are
more likely to outsource.
More than half (54%) of companies with turnovers of £250m or more
said they outsourced the running of all or part of their IT
infrastructure.
However, the number of smaller companies outsourcing was also high.
Just less than half (48%) of companies with turnovers of between
£50m and £250m said they outsourced the running of all or part of
their IT infrastructure.
The research was commissioned by Bluestar Solutions, the
outsourcing services provider.
Outsourcing - directors' concerns
- The perception that outsourcing services are unreliable (31% of
respondents) and fears over signing a long-term contract (29%) were
the main reasons why directors choose not to outsource
- Concerns about committing to a long-term contract (43%) was the
most important factor among directors in smaller companies with a
turnover of between £50m and £250m
- Concern about reliability was the main outsourcing turn-off for
directors in large companies
- One third of companies with turnovers of £250m or more saw
reliability as the biggest problem with outsourcers.