Managed services tops UK outsourcing poll

According to a survey by PMP Research, the overall outsourcing market will flourish over the next twelve months, driven by the...

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.

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