60% firms consider in-house IT ownership of no use: Savvis Study

According to a latest study conducted by Savvis, a global cloud infrastructure and hosted IT solution provider for enterprises, about three out of five companies consider that operating and maintaining IT infrastructure in-house increase cost and waste resources.

Savvis, arm of CentuaryLink Company which is the largest telecommunication company in US, provides IT and cloud infrastructure solutions to about 2,500 clients. Their clients include the top 100 in the Fortune 500 list. Savvis manages the IT functions of their clients and help them to improve their efficiency by harnessing the latest cloud technologies and reduce capital expense.

IT Infra. Image source Savvis

The survey was commissioned by international research firm Vanson Bourne and the survey was conducted among 550 IT managers in US, UK, Germany, Japan, Hong Kong and Singapore from varied industrial verticals which include finance, media, entertainment, retail, healthcare, automotive and software.

The report titled “Fast-Forward to 2013: 550 Global IT Execs Share their IT Outsourcing Strategies” reports that there is a growing trend among the IT business decision makers to rely on business process managers to manage their IT operations and infrastructure. The study reveals the significant cultural shift that is taking place in companies when it comes to IT management. While in 2010, only 38% of the IT executives considered managing IT functions in-house as a time and resource consuming process, in 2012, about 60% of the IT decision makers agree that operating IT functions in-house is a waste of time, resources and money.

Other key highlights from the report:

  1. According to the respondents, seeking the service of BPM service providers to provide them with IT infrastructure and cloud computing services is the means for them to improve operational efficiency, build competitive advantage and freeing up the budget from IT expenses.
  2. Currently about 25% of IT infrastructure are managed by IT process management service providers and in next five years, organizations plans to handover about 40% of IT infrastructure to BPM providers to manage.
  3. More than half of the respondents agree that they own IT equipments which now they regret purchasing. This emotion was high among the IT executives in US companies (64%) when compared to other IT decision makers of companies in Hong Kong and Singapore.
  4. The practice of maintaining IT infrastructure in-house was found prevailing more in Japan. About 56% of the respondents indicated that they maintain IT infrastructure in-house and 78% indicated that they still rely on in-house services.
  5. About 42% of the organizations which do not have contractual relationship with IT process managers cites contractual obligation as the reason for not entering hiring the service of IT process managers.
  6. 85% of the companies use the service cloud computing offers by BPM providers for data storage purposes. The figure was just 39% in 2010.

Further the report claims that agility as the top most reason for the IT decision makers in US, UK and Japan to avail IT infrastructure services offered by BPM service providers.

You can get more details on the report from here.

Latest Columns

Outsourcing using OPEX model to reduce ATM maintenance cost by more than 50%

Earlier in February this year, RBI, allowed non banking institutions to set up white –label ATMs to expand country’s ATM network. Banks also supported the decision as such machines will reduce their transaction cost and relieve them from the cost of maintaining the payment channel. The customers have to pay a small fee on using […]

Febuary 2010 News

Budget fails to address IT industry’s demand: Surjeet Singh Here is what Mr Surjeet Singh, Chief Financial Officer of Patni, has to say regarding Union Budget 2010:“Increase in MAT from 15% to 18% on book profits would result in higher outgo of cash in the short term and would affect Indian corporates adversely. Outsourcing to […]

Speak Your Mind