According to a recent survey, IT outsourcing will remain strong in 2016 however you would be surprised at the areas that will see increases and decreases.
Recently, Computer Economics surveyed over 130 North American companies in regards to their IT outsourcing practices. Here are some details on what the study has shown.
- Organizations are increasingly outsourcing functions such as IT security and application hosting.
- The average IT budget increased 3% in the last 12 months.
- Large companies continue to be the leaders in IT outsourcing as they spend an average of 7.8% of their yearly IT budgets.
- Mid-size companies spend 6.7% for IT outsourcing followed by small companies that spend 3.7% for IT outsourcing.
With a more in depth look, the functions being outsourced are changing including IT security, web ecommerce systems and application hosting seeing the biggest increase.
Application hosting has seen the biggest increase with 62% of organisations outsourcing it already with another 66% planning on it in the future. The biggest contributor to this rise has been the rise of Software as a service (SaaS) to application hosting.
A flat area has been datacenters and database administration, they have not seen an increase and there is no expectations of a future increase.
Managed IT Services and IT Outsourcing of desktop support, cloud computing, network operations and disaster recovery will increase at a steady rate because of the biggest potential for reducing costs through IT outsourcing.
IT outsourcing remains strong going into 2016 because it is becoming difficult to find the right staff and some Canadian firms have resorted to temporary workers to fill the IT talent gap.