October 21, 2018  
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IT Outsourcing Statistics 2018/2019: Outsourcing Trends and Cost/Service Experiences for 10 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 IT Outsourcing Statistics report, based on our annual survey of IT organizations in the U.S. and Canada.

With 105 pages and 89 figures, this publication provides an analysis of outsourcing statistics for 10 IT functions.

  • Application development
  • Application maintenance
  • Data center operations
  • Database administration
  • Desktop support
  • Disaster recovery services
  • Help desk services
  • IT security
  • Network operations
  • Web Operations

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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 outsourcing activity for all IT functions. We examine spending on outsourcing as a percentage of the IT budget. We then compare and contrast outsourcing activity for 10 IT functions, ranking them by outsourcing frequency, level, and net growth trend. We also use a scatter chart analysis to compare the popularity and potential value of outsourcing each function.

Spending on IT Outsourcing

Figure 1. Outsourcing as Percentage of Total IT Budget
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 II provides a detailed outsourcing profile for each of the 10 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: 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: 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

Data Center Operations Outsourcing Statistics

Figure 26. Outsourcing Profile: Data Center Operations
Figure 27. Outsourcing Frequency: Data Center Operations
Figure 28. Outsourcing Level: Data Center Operations
Figure 29. Outsourcing Trend: Data Center Operations
Figure 30. Outsourcing Cost Experience: Data Center Operations
Figure 31. Outsourcing Service Experience: Data Center Operations
Figure 32. Outsourcing Frequency and Level by Organization Size: Data Center Operations
Figure 33. Outsourcing Frequency by Sector: Data Center Operations

Database Administration Outsourcing Statistics

Figure 34. Outsourcing Profile: Database Administration
Figure 35. Outsourcing Frequency: Database Administration
Figure 36. Outsourcing Level: Database Administration
Figure 37. Outsourcing Trend: Database Administration
Figure 38. Outsourcing Cost Experience: Database Administration
Figure 39. Outsourcing Service Experience: Database Administration
Figure 40. Outsourcing Frequency and Level by Organization Size: Database Administration
Figure 41. Outsourcing Frequency by Sector: Database Administration

Desktop Support Outsourcing Statistics

Figure 42. Outsourcing Profile: Desktop Support
Figure 43. Outsourcing Frequency: Desktop Support
Figure 44. Outsourcing Level: Desktop Support
Figure 45. Outsourcing Trend: Desktop Support
Figure 46. Outsourcing Cost Experience: Desktop Support
Figure 47. Outsourcing Service Experience: Desktop Support
Figure 48. Outsourcing Frequency and Level by Organization Size: Desktop Support
Figure 49. Outsourcing Frequency by Sector: Desktop Support

Disaster Recovery Services Outsourcing Statistics

Figure 50. Outsourcing Profile: Disaster Recovery Services
Figure 51. Outsourcing Frequency: Disaster Recovery Services
Figure 52. Outsourcing Level: Disaster Recovery Services
Figure 53. Outsourcing Trend: Disaster Recovery Services
Figure 54. Outsourcing Cost Experience: Disaster Recovery Services
Figure 55. Outsourcing Service Experience: Disaster Recovery Services
Figure 56. Outsourcing Frequency and Level by Organization Size: Disaster Recovery Services
Figure 57. Outsourcing Frequency by Sector: Disaster Recovery Services

Help Desk Services Outsourcing Statistics

Figure 58. Outsourcing Profile: Help Desk Services
Figure 59. Outsourcing Frequency: Help Desk Services
Figure 60. Outsourcing Level: Help Desk Services
Figure 61. Outsourcing Trend: Help Desk Services
Figure 62. Outsourcing Cost Experience: Help Desk Services
Figure 63. Outsourcing Service Experience: Help Desk Services
Figure 64. Outsourcing Frequency and Level by Organization Size: Help Desk Services
Figure 65. Outsourcing Frequency by Sector: Help Desk Services

IT Security Outsourcing Statistics

Figure 66. Outsourcing Profile: IT Security
Figure 67. Outsourcing Frequency: IT Security
Figure 68. Outsourcing Level: IT Security
Figure 69. Outsourcing Trend: IT Security
Figure 70. Outsourcing Cost Experience: IT Security
Figure 71. Outsourcing Service Experience: IT Security
Figure 72. Outsourcing Frequency and Level by Organization Size: IT Security
Figure 73. Outsourcing Frequency by Sector: IT Security

Network Operations Outsourcing Statistics

Figure 74. Outsourcing Profile: Network Operations
Figure 75. Outsourcing Frequency: Network Operations
Figure 76. Outsourcing Level: Network Operations
Figure 77. Outsourcing Trend: Network Operations
Figure 78. Outsourcing Cost Experience: Network Operations
Figure 79. Outsourcing Service Experience: Network Operations
Figure 80. Outsourcing Frequency and Level by Organization Size: Network Operations
Figure 81. Outsourcing Frequency by Sector: Network Operations

Web Operations Outsourcing Statistics

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


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