Businesses look to IT outsourcing to add value

Posted by Louise Tate

Many businesses are looking to shift away from in-house IT to outsourcing in a bid to add business value, a new study has revealed.

According to research from Vanson Bourne for hosting provider Savvis, of the 600 firms surveyed, 61 per cent do not believe that managing IT in-house provides and competitive advantage and should stop.

The survey's findings forecast a drop in in-house IT infrastructure over the next the years, from 90 per cent today to just 23 per cent in 2020.

When asked about the barriers preventing their business from outsourcing now, 43 per cent said company culture was an issue and 37 per cent cited sunk costs, where IT assets are already paid for.

Gagan Gorava, industry analyst writing for Bizits.ca, said in the wake of the economic downturn many companies have taken up IT outsourcing as they seek a more cost-effective solution to their IT management.