The general annual survey of £14bn worth of UK IT services contacts has admitted a continued appetite to outsource, new reasons for doing so and various ways of doing it. The KPMG’s annual UK IT Service Provider Performance study in the sixth year which was previously completed by the EquaTerra before KPGG acquired it, analyzed 630 UK IT outsourcing contracts worth £14bn. There were a total 230 businesses that were interviewed. The findings includes the fact that the 76% of the organizations will continue to outsource IT at the same level. Yet, it is only 19% that will outsource compared with the 25% in the study.
A key factor for the 76% of respondents savings is still cited, however access to financial and skills flexibility are also becoming, nearshore, offshore and in-house options. The survey is subjected bu financial services firms which account for the 30% of the companies interviewed. With the 58% of them likely to outsource more over the next year the year’s analysis revealed that the organizations are the most likely to outsource IT compared with the 44% of all companies surveyed. The survey revealed that evern though 90% of the public sector organizations outsourcing IT. There were 29% provides from the offshore or nearshore location. This compares with the 66% of organizations across all across.
The year’s study also analysis trends in the particular technology outsourcing including the application development and management, network services and infrastructure services. The head of KPMG’s technology shared services and outsourcing advisory, Lee Ayling said that the technology is increasing driving UK businesses and outsourcing is central to this. The suppliers to outsourced IT services must react to new demands from the customers such as the multi-sourced contracts and the new delivery options. The outsourcing looks set to remain a large part of the IT spend in the UK, however suppliers should not take it for granted that clients will remain willing to put their hands in their pockets.
REFERENCE:
http://www.computerweekly.com/news/2240163409/KPMG-survey-reveals-state-of-IT-outsourcing