Cloud drives outsourcing take-up

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Cloud drives outsourcing take-up

Kathleen Hall

The appetite for outsourcing among IT professionals is growing due to the uptake of cloud services and infrastructure-on-demand, says research.

On average organisations say more than a quarter of their IT budgets are spent on outsourcing infrastructure, and expect that percentage to grow to 40% over the next five years, according to research firm Vanson Bourne on behalf of IT supplier Savvis.

Of the 550 global IT decision-makers surveyed, 85% said they use private and public cloud for storage and big-data analytics, compared with 39% in 2010.

Neil Cresswell, managing director at  Savvis, said cloud services and smaller outsourcing contracts were driving the uptake in businesses seeking to divest IT infrastructure ownership.

“Outsourcing as a word has some connotations, good and bad from the past 15 years. But today’s form of outsourcing is about buying services in from external services provider and integrating them, with cloud playing a big part in that” he said.

According to the findings, 42% of organisations do not currently outsource all of their IT, naming contractual obligations as the main reason for not doing so.


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