Financial Benefits of IT Outsourcing Revealed
Outsourcing IT services can save companies significant sums of money, a new study claims.
Feb 23, 2007
A report by the Info-Tech Research group has revealed that large and small businesses alike can achieve financial benefits from outsourcing their IT applications to a specialist firm.
The research found that outsourcing IT help-desk services could save a company up to 13 per cent in costs, with a similar practice for application development services offering potential savings of 20 per cent.
Firms could benefit most from outsourcing their IT infrastructures, the report claims, explaining that many could save more than a quarter on their current costs by improving their skills base, allowing them to reduce management spending.
Jennifer Colasanti, a research consultant at Info-Tech, explained that cost savings were just part of the reason firms were turning to IT outsourcers.
"In a third of the organisations studied, increased IT efficiency was the key motivator for outsourcing," she said.
"In these instances benefit drivers like access to more expertise, repurposing of employees and the reduction of management overhead and internal training bring greater benefit to the business than cost savings alone."
Farming out application support services offers the potential for a 16 per cent reduction in costs, the report found.
The research found that outsourcing IT help-desk services could save a company up to 13 per cent in costs, with a similar practice for application development services offering potential savings of 20 per cent.
Firms could benefit most from outsourcing their IT infrastructures, the report claims, explaining that many could save more than a quarter on their current costs by improving their skills base, allowing them to reduce management spending.
Jennifer Colasanti, a research consultant at Info-Tech, explained that cost savings were just part of the reason firms were turning to IT outsourcers.
"In a third of the organisations studied, increased IT efficiency was the key motivator for outsourcing," she said.
"In these instances benefit drivers like access to more expertise, repurposing of employees and the reduction of management overhead and internal training bring greater benefit to the business than cost savings alone."
Farming out application support services offers the potential for a 16 per cent reduction in costs, the report found.