BPM spending by IT organizations going up: Computer Economics Study

As the businesses stabilize and expand, seeking the service of BPM service provider by the companies to manage their IT process is on the rise, reported Computer Economics, a leading research and advisory service firm based in US. According to a report brought out by Computer Economics’ Annual IT outsourcing statistics 2012/2013, the percentage of the IT budget allocated to use the services of BPM to providers to manage their IT process increased to 23% in the year 2012. The study found that the there was an increasing trend among the companies to hire the service business process management service providers to manage their IT help desk support process. The report also claims that Web/e-commerce and application development were the two major IT process that were widely managed by the process management service providers.

Computer Economics is a leading research firm delivering advisory services for IT management. Their clients include major IT organizations, consulting firms and professional services firms spread across over 30 countries. The report “Annual IT outsourcing statistics 2012/2013” was published based on the survey conducted among 200 IT organizations in US and Canada. The survey report analyses the trend among the companies in utilizing the BPM services to manage their 11 IT process, namely:

  1. Application Development
  2. Application Maintenance
  3. Application Hosting
  4. Data Center Operations
  5. Database Administration
  6. Desktop Support
  7. Disaster recovery services
  8. Help Desk Services
  9. IT security
  10. Network operations
  11. Web/e-commerce systems.

Excerpts from the report

  1. Utilizing BPM services to manage help desktop support and IT functions can reduce the cost considerably.
  2. Seeking the services of service provider to manage desktop support and IT security functions can improve the service.
  3. While deciding on buying the BPM services to manage their IT process, the companies try to find out as to how many organizations use the service to manage a particular IT function and how much of work load has been reduced.
  4. One of the primary reasons to hire an outside agency to manage the IT functions remains to be cost reduction.
  5. The report claims that most of the IT organizations have started using cloud based services.
  6. According to the report, companies plan to utilize BPM services to manage their data center operations.
  7. For most of the companies, the percentage of IT budget allocated to buy the IT process management services is up by 8% when compared to 7% in 2011.
  8. According to the report, spending on IT has also shown a rise when compared to the last year statistics and it is claimed that a larger part of IT budget of the companies will be eaten up by BPM in future.
  9. Cloud based applications, greater adoption of software-as-a-service and managing of data center operations by service providers are having a positive effect on the IT BPM budget.

Further the report also indicates that the companies intend to utilize BPM services to manage more of their IT functions.

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