- Major Studies
- Advisory Reports
- Valuation Data
During the recession, spending on outsourcing as a percentage of total IT spending rose as IT executives wrestled with hiring freezes and the need for flexibility. This year, the data suggests the rise in outsourcing is taking a break as IT budgets regain their equilibrium.
The Computer Economics IT Outsourcing Statistics 2011/2012 study found that among organizations that outsource IT work, the percentage of their total IT spending going to service providers rose from 6.1% in 2009 to 7.1% in 2010 and then leveled out, showing no year-over-year growth in 2011 (Figure 1).
While a robust recovery might prompt organizations to seek outside help, at least on a temporary basis, the recovery in IT spending is not yet strong enough to accelerate spending on outsourcing services. It is also no longer weak enough to prompt companies to slash internal expenses in favor of external service providers.
In short, IT executives are maintaining the status quo, awaiting evidence that the tenuous economic recovery will progress before engaging in more strategic outsourcing initiatives.
In the full study, we examine the outsourcing of 11 IT functions. For each function, we assess the adoption trend. We look at how many organizations are outsourcing work and how much of their workload is being outsourced. We also measure the success IT organizations are having with each of these services. We look at not only the success rate for reducing costs, but also for improving service. Finally, we examine the frequency and amount of offshore outsourcing for each function.
Other key findings in the study:
These and other important trends are discussed in more detail in the full study.