NEWS
The biggest cost-savings in IT outsourcing come from moving infrastructure such as networks and servers out of house - leading to an average cost reduction of 27 per cent, new research reveals.
Other areas which also bring about savings include outsourcing application development, which reduces spending by around 20 per cent; application support (16 per cent); and helpdesk services (13 per cent).
Jennifer Colasanti, research consultant with Info-Tech Research Group, which carried out the research, said outsourcing IT infrastructure produces the highest average return while offering the most consistent success and low risk.
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The research also indicates that as the percentage of IT budget which is spent on outsourcing increases, the level of cost saving diminishes as other factors beyond cost become more important to businesses.
A third of organisations studied said increased efficiency was the main reason for outsourcing. Access to IT expertise or reduction in overheads related to internal training and management were also important to them.
The findings come from the Info-Tech Research Group impact research report, IT Outsourcing with Purpose, which surveyed more than 1,600 North American businesses during 2006.
