October 29, 2009
Companies Are Opting for IT Outsourcing for Cost Savings
A survey conducted by Hibernia Evros Technology Group found that firms are opting for IT outsourcing not only so they can focus on their core business processes but also to save on costs.
More than fifty percent of the firms that were surveyed were composed of Irish small and medium-scale enterprises - or companies that employ a maximum of 250 people.
The survey found that 63 percent of these businesses consider the need to focus on their core businesses as a reason for outsourcing. Cost savings came out as the second most popular reason, chosen by 51 percent of respondents. Almost half or 47 percent said that they opted to source IT functions in order to release internal IT staff and give way to more strategic worth.
Hardware support is the most commonly outsourced IT function (72%). This is followed by managed hosting at 41%. Security or virus protection and network management share the third position at 38%.
According to John Kennedy, marketing director for Hibernia Evros Technology Group, Irish companies implement sophisticated outsourcing strategies. The market perception states that Ireland-based companies are hesitant when it comes to the idea of outsourcing but this survey states otherwise, he explains. This may be due to the current economic downturn. The financial crunch is encouraging firms to work more on their core businesses and tap into new opportunities for reducing the internal expenditures.
The survey also asked respondents who chose not to outsource about the reasons for their decision. More than a third or 39 percent say that they already have a capable IT team. A quarter find it cheaper to manage their IT solutions in-house while 12 percent fear the loss of control over their IT department.
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