Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Blogs Careers
    • Blogs
    • Careers

    Where Outsourcing Dollars Go

    By
    Donald Sears
    -
    November 1, 2010
    Share
    Facebook
    Twitter
    Linkedin

      The last three years have seen outsourcing as an expense of IT operating budgets rise from less than 4 percent in 2008 to over 7 percent in 2010, according to a Computer Economics (CE) study dubbed “IT Outsourcing Statistics 2010/2011.”

      That’s good news if you work for an outsourcing services provider. But what kind of services are IT departments spending on? Surprisingly, CE finds the most popular form of outsourcing by frequency and level are Web and e-commerce systems. By frequency alone, hosted applications and SaaS services lead the pack. But as CE points out in an email release about the report: “[T]he percentage of the typical portfolio being outsourced is still small, and the outsourcing cost and service success rates are low compared to other IT functions in this study.”

      Some other things of note:

      • 44 percent of companies surveyed who are utilizing outsourced desktop support report saving money–this is the biggest area of cost savings.
      • 50 percent of companies who outsource IT security see improved service levels.
      • Sales staffs at SaaS and hosted application companies are having strong success with penetrating deeper in to those accounts for further business.

      John Longwell, CE’s VP of research puts the outsourcing trends in perspecitve:

      “[T]he bottom line is that IT organizations are outsourcing a greater portion of their IT functions today than just a few years ago. The recession seems to be accelerating an ongoing trend, but there are other factors.We’re seeing a sharp rise in the number of organizations outsourcing applications to SaaS vendors, for instance. Cloud computing is a development that will result in more money being spent with outside service providers, regardless of the macroeconomic climate.“

      The message here for job seekers: Web services, cloud infrastructure management, security and services providers are excellent companies to target for jobs. Look for those companies who are dominating a niche. Do your homework and network with these companies.

      Donald Sears

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×