Outsourcing to take bigger slice of IT spend

UK companies plan to increase their spending on IT outsourcing.

UK companies plan to increase their spending on IT outsourcing.

More than half (56%) the organisations polled by PMP Research said they planned to spend more on outsourcing over the next two years, while nearly a third (31%) reckoned their outsourcing investment would remain the same.

Only 11% said they would be cutting investment.

The survey also revealed that the key drivers for user investment were access to specialist skills and the desire to focus on the core business.

For many companies, outsourcing accounted for a large slice of the total IT budget. Nearly three in 10 spent between 10% and 25% of their budget on outsourcing, and 13% spent between a quarter and half of their annual IT spend on third-party providers.

One in nine respondents ploughed more than £10m into a typical outsourcing contract.

At the other end of the scale, 19% estimated a typical contract to be worth between £50,000 and £100,000, and 13% invested less than £50,000.

Read more on IT outsourcing

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