IT Outsourcing Percentage at Its Highest Level in Recent Years

IT organisations are committing to outsourcing this year at the highest rate since the Great Recession. the percentage of the total IT budget being spent on outsourcing rose from 10.6% in 2016 to 11.9% in 2017. This represents a major increase as organisations have hovered between 10.2% and 10.6% for the previous four years.

IT security is one of the fastest growing functions to be outsourced. Other areas growing quickly included disaster recovery and network operations. Like security, these are areas that are important, but require specialised skills that are not necessarily core to the business.”

Here are some of the statistics related to the improvement:

1. Large organisations have increased the percentage of their IT budgets spent on outsourcing from 6.3% to 8.7%. Small organisations are now spending 7.8% of their IT budget on outsourcing at the median this year, compared to 6.7% last year. 

2. Organisations that outsource are favouring help desk and web operations as functions where they are moving the largest percentage of work to service providers.

3. In these times of relatively good economic growth, 37% of organisations that outsource this function are planning to increase the amount of work they outsource.

4. IT security and disaster recovery, especially, are areas where the motivation to outsource has less to do with saving money and more to do with having the job done better than it can be done in-house.

5. The IT functions with the greatest potential for successfully reducing costs through outsourcing are help desk, desktop support, disaster recovery, and data centre operations

Chetu Inc is Plantation based software Development Company, with offices all over the US and the globe, Chetu is one of the most reliable software and application development service providers. They have been in business for over 16 years, and their 1200+ developers have created over 16,000 applications. Chetu is a professional and reliable mobile app and web Development Company provides world class web development solutions. We profile outsourcing activity for all IT functions including application development, application maintenance solutions, data centre operations, database administration, desktop support, disaster recovery services, help desk services, IT security, network operations, and web operations.