IT Outsourcing Statistics 2019/2020--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 IT Outsourcing Statistics report, based on our annual survey of IT organizations in the U.S. and Canada.
With 115 pages and 97 figures, this publication provides an analysis of outsourcing statistics for 11 IT functions.
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Application development
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Application management
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Data center operations
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Database administration
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Desktop support
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Disaster recovery services
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Help desk services
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IT security
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Network operations
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System implementation/integration
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Web operations
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Executive Summary
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Introduction
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Key Findings
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How the Study Measures Outsourcing Activity
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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 11 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 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: 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 Management Outsourcing Statistics
Figure 18. Outsourcing Profile: Application Management
Figure 19. Outsourcing Frequency: Application Management
Figure 20. Outsourcing Level: Application Management
Figure 21. Outsourcing Trend: Application Management
Figure 22. Outsourcing Cost Experience: Application Management
Figure 23. Outsourcing Service Experience: Application Management
Figure 24. Outsourcing Frequency and Level by Organization Size: Application Management
Figure 25. Outsourcing Frequency by Sector: Application Management
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
System Implementation/Integration Outsourcing Statistics
Figure 82. Outsourcing Profile: System Implementation/Integration
Figure 83. Outsourcing Frequency: System Implementation/Integration
Figure 84. Outsourcing Level: System Implementation/Integration
Figure 85. Outsourcing Trend: System Implementation/Integration
Figure 86. Outsourcing Cost Experience: System Implementation/Integration
Figure 87. Outsourcing Service Experience: System Implementation/Integration
Figure 88. Outsourcing Frequency and Level by Organization Size: System Implementation/Integration
Figure 89. Outsourcing Frequency by Sector: System Implementation/Integration
Web Operations Outsourcing Statistics
Figure 90. Outsourcing Profile: Web Operations
Figure 91. Outsourcing Frequency: Web Operations
Figure 92. Outsourcing Level: Web Operations
Figure 93. Outsourcing Trend: Web Operations
Figure 94. Outsourcing Cost Experience: Web Operations
Figure 95. Outsourcing Service Experience: Web Operations
Figure 96. Outsourcing Frequency and Level by Organization Size: Web Operations
Figure 97. Outsourcing Frequency by Sector: Web Operations
Appendix
Survey Methodology
Coronavirus Putting 2020 IT Budget Plans in State of Flux
Coronavirus Impact on IT Budgets Still Coming
How Digital Transformation Will Drive IT Organizations in the Post-Pandemic World
Digital Masters 2020 – COVID-19 Redefining Frontier of Digital Transformation
SAP S/4HANA—Laying a Foundation for Digital Transformation
IT Spending as a Percentage of Revenue by Industry, Company Size, and Region
How Does IT Spending Vary by Industry and Company Size?