In a series of short entries, we would like to present to you some trends and facts of the IT outsourcing environment in 2011. Today we start with some findings of the Gartner Group Survey and some general facts about the current IT climate.
- Companies spend on average 6% of their IT budgets on outsourcing.
- The forecast for the outsourcing industry is that 85% of the companies surveyed by the Gartner Group will increase their IT outsourcing spending.
- The companies that outsource their IT functions are not only big organizations. In fact the organisations that most benefit from IT outsourcing are small or medium sized enterprises.
- Statistics show that one of the most outsourced functions is the management of companies’ web presence - both websites and e-commerce applications. The most outsourced activity is still the development of custom applications.
- Amongst the most common problems that companies face when they outsource are difficulties in communication. Communication problems affect the cost of outsourcing and the projects’ delivery. Avoiding these communications problems is the main reason why Eastern Europe is gaining ground as the favorite location to outsource. The technical skills of the IT professionals in Eastern Europe are at a top level, while the good English language skills and the lack of a significant time difference of the region make communications easy and fluid.
We would welcome your comments and questions on what side of the IT Outsourcing industry you would like us to highlight next. Please contact us today to express your views.