August 30, 2014  
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IT Outsourcing Statistics 2013/2014: Outsourcing Trends and Cost/Service Experiences for 11 Key IT Functions

How many IT organizations are outsourcing particular functions and how much work are they actually outsourcing? Is the outsourcing trend up or down? What percentage of the typical IT budget goes to outside service providers, and how do costs and service levels for outsourcing  providers compare to doing the same work in-house?

To answer these and other questions, Computer Economics has released its newly-expanded IT Outsourcing Statistics report, based on our annual survey of more than 200 IT organizations in the U.S. and Canada.

With 118 pages and 100 figures, this publication provides an analysis of outsourcing statistics for 11 IT functions.

  •     Application development
  •     Application maintenance
  •     Application hosting
  •     Data center operations
  •     Database administration
  •     Desktop support
  •     Disaster recovery services
  •     Help desk services
  •     IT security
  •     Network operations
  •     Web/e-commerce systems

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Table of Contents and Lists of Figures



 EXECUTIVE SUMMARY

  •     Introduction
  •     Key Findings
  •     How the Study Measures Outsourcing Activity
  •     IT Functions Covered in the Study


PART I: IT OUTSOURCING OVERVIEW

Part I provides an overview of the 11 outsourced IT functions. First, we examine spending on outsourcing as percentage of the IT budget. We then compare and contrast outsourcing activity for the 11 IT functions, ranking them according to frequency, level, and trend. In addition, we compare and contrast these 11 IT functions in two ways: (1) according to their frequency of being outsourced versus the level of work outsourced, and (2) according to their reported success in cost-savings versus their reported success in improving service levels.

  • Outsourcing Budget as Percentage of IT Budget

Figure 1. Outsourcing as Percentage of Total IT Budget 2009-2013
Figure 2. Outsourcing as Percentage of IT Budget, by Organization Size

  • Outsourcing Frequency and Level

Figure 3. Percentage of Organizations Outsourcing Function (Frequency)
Figure 4. Percentage of Work Outsourced (Level)
Figure 5. IT Outsourcing Adoption Analysis

  • Outsourcing Trend

Figure 6. Net Percentage of Organizations Increasing Amount of Work Outsourced, by Function

  • Outsourcing Cost and Service Experience

 Figure 7. Outsourcing Cost-Success Rate for Each Function
 Figure 8. Outsourcing Service-Success Rate for Each Function
 Figure 9. IT Outsourcing Value Analysis (Cost-Success v. Service-Success)


PART II: OUTSOURCING PROFILES

Part III provides a detailed outsourcing profile for each of the 11 IT functions. We report the outsourcing frequency, outsourcing level, outsourcing trend, cost experience, and service experience. We also report the outsourcing frequency and level by organization size (small/midsize vs. large) and the outsourcing frequency by industry sector.

  • Application Development Outsourcing Statistics

Figure 10. Outsourcing Profile: Application Development
Figure 11. Outsourcing Frequency 2009-2013: Application Development
Figure 12. Outsourcing Level: Application Development
Figure 13. Outsourcing Trend: Application Development
Figure 14. Outsourcing Cost Experience: Application Development
Figure 15. Outsourcing Service Experience: Application Development
Figure 16. Outsourcing Frequency and Level by Organization Size: Application Development
Figure 17. Outsourcing Frequency by Sector: Application Development

  • Application Maintenance Outsourcing Statistics

Figure 18. Outsourcing Profile: Application Maintenance
Figure 19. Outsourcing Frequency 2009-2013: Application
Maintenance
Figure 20. Outsourcing Level: Application Maintenance
Figure 21. Outsourcing Trend: Application Maintenance
Figure 22. Outsourcing Cost Experience: Application Maintenance
Figure 23. Outsourcing Service Experience: Application Maintenance
Figure 24. Outsourcing Frequency and Level by Organization Size: Application Maintenance
Figure 25. Outsourcing Frequency by Sector: Application Maintenance

  • Application Hosting Outsourcing Statistics

Figure 26. Outsourcing Profile: Application Hosting
Figure 27. Outsourcing Frequency 2011-2013: Application Hosting
Figure 28. Outsourcing Level: Application Hosting
Figure 29. Outsourcing Trend: Application Hosting
Figure 30. Outsourcing Cost Experience: Application Hosting
Figure 31. Outsourcing Service Experience: Application Hosting
Figure 32. Outsourcing Frequency and Level by Organization Size: Application Hosting
Figure 33. Outsourcing Frequency by Sector: Application Hosting

  • Data Center Operations Outsourcing Statistics

Figure 34. Outsourcing Profile: Data Center Operations
Figure 35. Outsourcing Frequency 2009-2013: Data Center Operations
Figure 36. Outsourcing Level: Data Center Operations
Figure 37. Outsourcing Trend: Data Center Operations
Figure 38. Outsourcing Cost Experience: Data Center Operations
Figure 39. Outsourcing Service Experience: Data Center Operations
Figure 40. Outsourcing Frequency and Level by Organization Size: Data Center Operations
Figure 41. Outsourcing Frequency by Sector: Data Center Operations

  • Database Administration Outsourcing Statistics

Figure 42. Outsourcing Profile: Database Administration
Figure 43. Outsourcing Frequency 2009-2013: Database Administration
Figure 44. Outsourcing Level: Database Administration
Figure 45. Outsourcing Trend: Database Administration
Figure 46. Outsourcing Cost Experience: Database Administration
Figure 47. Outsourcing Service Experience: Database Administration
Figure 48. Outsourcing Frequency and Level by Organization Size: Database Administration
Figure 49. Outsourcing Frequency by Sector: Database Administration

  • Desktop Support Outsourcing Statistics

Figure 50. Outsourcing Profile: Desktop Support
Figure 51. Outsourcing Frequency 2009-2013: Desktop Support
Figure 52. Outsourcing Level: Desktop Support
Figure 53. Outsourcing Trend: Desktop Support
Figure 54. Outsourcing Cost Experience: Desktop Support
Figure 55. Outsourcing Service Experience: Desktop Support
Figure 56. Outsourcing Frequency and Level by Organization Size: Desktop Support
Figure 57. Outsourcing Frequency by Sector: Desktop Support

  • Disaster Recovery Services Outsourcing Statistics

Figure 58. Outsourcing Profile: Disaster Recovery Services
Figure 59. Outsourcing Frequency 2009-2013: Disaster Recovery Services
Figure 60. Outsourcing Level: Disaster Recovery Services
Figure 61. Outsourcing Trend: Disaster Recovery Services
Figure 62. Outsourcing Cost Experience: Disaster Recovery Services
Figure 63. Outsourcing Service Experience: Disaster Recovery Services
Figure 64. Outsourcing Frequency and Level by Organization Size: Disaster Recovery Services
Figure 65. Outsourcing Frequency by Sector: Disaster Recovery Services

  • Help Desk Services Outsourcing Statistics

Figure 66. Outsourcing Profile: Help Desk Services
Figure 67. Outsourcing Frequency 2009-2013: Help Desk Services
Figure 68. Outsourcing Level: Help Desk Services
Figure 69. Outsourcing Trend: Help Desk Services
Figure 70. Outsourcing Cost Experience: Help Desk Services
Figure 71. Outsourcing Service Experience: Help Desk Services
Figure 72. Outsourcing Frequency and Level by Organization Size: Help Desk Services
Figure 73. Outsourcing Frequency by Sector: Help Desk Services

  • IT Security Outsourcing Statistics

Figure 74. Outsourcing Profile: IT Security
Figure 75. Outsourcing Frequency 2009-2013: IT Security
Figure 76. Outsourcing Level: IT Security
Figure 77. Outsourcing Trend: IT Security
Figure 78. Outsourcing Cost Experience: IT Security
Figure 79. Outsourcing Service Experience: IT Security
Figure 80. Outsourcing Frequency and Level by Organization Size: IT Security
Figure 81. Outsourcing Frequency by Sector: IT Security

  • Network Operations Outsourcing Statistics

Figure 82. Outsourcing Profile: Network Operations
Figure 83. Outsourcing Frequency 2010-2013: Network Operations
Figure 84. Outsourcing Level: Network Operations
Figure 85. Outsourcing Trend: Network Operations
Figure 86. Outsourcing Cost Experience: Network Operations
Figure 87. Outsourcing Service Experience: Network Operations
Figure 88. Outsourcing Frequency and Level by Organization Size: Network Operations
Figure 89. Outsourcing Frequency by Sector: Network Operations

  • Web/E-Commerce Systems Outsourcing Statistics

Figure 90. Outsourcing Profile: Web/E-Commerce Systems
Figure 91. Outsourcing Frequency 2009-2013: Web/E-Commerce Systems
Figure 92. Outsourcing Level: Web/E-Commerce Systems
Figure 93. Outsourcing Trend: Web/E-Commerce Systems
Figure 94. Outsourcing Cost Experience: Web/E-Commerce Systems
Figure 95. Outsourcing Service Experience: Web/E-Commerce Systems
Figure 96. Outsourcing Frequency and Level by Organization Size: Web/E-Commerce Systems
Figure 97. Outsourcing Frequency by Sector: Web/E-Commerce Systems

 

APPENDIX

  • Survey Methodology
  • Survey Participants

Figure 98. Key Demographics of Survey Sample
Figure 99. Survey Participants by Size of IT Operational Budgets
Figure 100. Survey Participants by Secto
r


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