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June 16, 2010

Global IT infrastructure outsourcing to reach 64% in 2020: Survey

UK in-house IT infrastructure predicted to drop to 23% in 2020

By CBR Staff Writer

The number of companies that outsource their IT infrastructure is expected to increase globally from 17% to 64% in 2020, according to a survey commissioned by Savvis and conducted by independent research firm Vanson Bourne.

The survey, of more than 600 IT and business decision makers in the US, the UK and Singapore, found that 61% of them believe managing IT in-house provides no competitive advantage and has to stop.

According to the survey, the US in-house IT infrastructure is expected to drop from present 82% to 49% in 2020, the UK in-house IT infrastructure is predicted to drop from 90% today to 23% in 2020, and Singapore IT infrastructure being controlled in-house to drop from 62% today to 38% in 2020.

In looking at 2010, organisations cited cost savings (58%) and growing revenue (54%) as their top strategic priorities. The biggest issue organisations face concerns doing more with less budget (54%).

The survey respondents cited company culture (43%) and sunk costs in which IT assets already are paid for and owned (37%), when asked about the factors preventing their organisations from outsourcing all elements of their IT infrastructure.

Bryan Doerr, chief technology officer at Savvis, said: "With the rise in acceptance of outsourcing within the IT industry, and the related economies of scale that accompany the managed services model, businesses are finding it difficult to justify owning their own IT infrastructures."

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