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IT organizations are committing to outsourcing this year at the highest rate since the Great Recession. The new IT Outsourcing Statistics 2017/2018 study from Computer Economics finds that while organizations aren’t broadly increasing the number of functions they choose to outsource, they are increasing the amount of work they send to outside service providers. In other words, more companies are choosing to tap into certain skills from outside organizations so they can focus on mission critical skills in-house.
As shown in Figure 1 from the full study, 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 organizations have hovered between 10.2% and 10.6% for the previous four years.
“Not surprisingly, IT security was the fastest growing function being outsourced. The variety of threats and the danger they pose increase yearly,” said David Wagner, vice president of research for Computer Economics, based in Irvine, Calif. “Finding and maintaining the right skills to meet these threats can be a challenge. Turning to experts to supplement internal IT security skills is a wise choice for most organizations. Other areas growing quickly included disaster recovery and network operations. Like security, these are areas that are important, but require specialized skills that are not necessarily core to the business.”
Here are other key findings from our IT Outsourcing Statistics study this year: