Outsourced IT Continues to Rise

A survey from Bluewolf indicates that businesses are choosing to bring on more contractors rather than hiring full-time IT staff. Today, one-quarter of annual IT budgets are spent on outsourcing and according to a survey, 32% of businesses are planning to increase their investment in IT outsourcing within the next 12 to 18 months.

Not only is outsourcing IT cost-effective, but hiring outside help allows companies to become more agile and prepared when responding to business technology challenges.  Keeping up with new technology solutions, trends, and training can take a considerable amount of time away from other vital areas of a business.

According to Baseline, “CIOs are embracing the elastic workforce to gain access not only to more talent, but also to a specialized pool of workers at the top of their game who offer an outsider’s perspective.”

• 32% of the surveyed companies will increase outsourced IT investments in the next 12 to 18 months.
• 48% of these enterprises will bring on more contractors rather than full-time staff.
• 73% outsource application services, and 30% are planning to increase this within 12 to 18 months.
• 48 cents of every outsourcing dollar is being spent on application services.
• 35 cents of every outsourcing dollar is being spent on IT infrastructure services.
• 16% of data center operations are managed in the cloud.
• 35% of companies plan to increase the outsourcing of application hosting in the next 12 to 18 months.
• 23% of installed applications were running in a Virtual Machine (VM) in 2010, and now 48% of installed applications are currently running on a VM.
• 22% plan to increase the outsourcing of data center operations within the next 12 to 18 months.
• 21% plan to increase the outsourcing of network operations within the next 12 to 18 months.
• 17% of businesses plan to increase the outsourcing of disaster recovery within the next 12 to 18 months.