According to a survey by PMP Research, the overall
outsourcing market will flourish over the next twelve months,
driven by the increasing popularity of managed
services.
The research, sponsored by Computacenter, was based on the views
of 100 IT executives at companies with more than 500 employees and
an annual turnover in excess of £50m.
Overall, it found that 70% of organisations think spending on
outsourcing will increase or stay at the current level.
Three-fifths of IT decision-makers in private and public
organisations are using managed services as part of their IT
strategy and 20% less are relying on offshore outsourcing within
their organisation.
Improving service levels and reducing operational costs were
found by the survey as the main drivers behind the decision to
outsource. Improved service levels were highlighted as one of the
three key benefits that companies have gained as a result of
outsourcing.
More than 50% stated that they had achieved measurable cost
savings and gained access to a wide range of IT skills. The survey
also highlighted some of the other difficulties that can surround
outsourcing, with 70% of organisations citing managing supplier
relationships as the biggest challenge.
Commenting on the findings, Simon Walsh, director of client
services at the research, says: “This survey demonstrates the
continuing importance of IT outsourcing to organisations trying to
reduce costs and improve efficiency. Although offshore outsourcing
does enable businesses to make short-term financial gains, it is
not suited to delivering the service and performance improvements
that companies are now looking for.
“Achieving financial savings through outsourcing requires a
strong partnership approach. If an organisation views outsourcing
just as a way to get rid of its IT problems then the relationship
will not be successful.”
Adds Robert Morgan, from Morgan Chambers: “Cultural
compatibility between the end user organisation and the outsourcer
are essential for a successful relationship. Having realistic
expectations and ensuring ongoing executive sponsorship are also
key.”
This article was part of Computer Weekly's managed services
business channel, sponsored by Computacenter.