Levels of Service and Access to Specialist Skills Leads Organisations to Look to Outsource IT

Recent research conducted by KPMG reveals signs of a shift in the reasons organisations are looking to outsource the management of their IT.

Recent research conducted by KPMG reveals signs of a shift in the reasons organisations are looking to outsource the management of their IT. Instead of the cost saving drivers typically associated with IT outsourcing, KMPG reported that improving levels of service and gaining access to specialist skills are becoming increasingly important when making IT outsourcing decisions.

In a previous survey conducted by KPMG in 2010, 82 per cent of respondents stated cost savings as the main factor driving decisions to outsource services. In the recent study however, this figure had dropped to 70 per cent. While financial benefits remain important, it appears other factors are increasingly influencing outsourcing decisions.

Improved service

The results of the report revealed a significant increase in the priority placed on flexibility of service providers when compared to the 2010 results. Organisations are increasingly looking for outsourcing providers that can improve the level of service the IT function provides to users and the business as a whole.

Outsourcing skills

Over half of those surveyed also revealed that they don’t have the resources in house to manage their own IT infrastructure effectively, making outsourcing an effective way for small and medium sized businesses to gain cost effective access to the specialist IT skills they need.

Medium Sized Business IT Outsourcing Trends

Esteem Systems, a specialist managed IT services provider, has also seen a distinct increase in medium sized businesses opting to outsource the management of their IT infrastructure for reasons other than purely reducing costs. Joe Connolly, Chief Executive of Esteem says: “In the last year or so we’ve seen more and more medium sized businesses coming to us to help them improve the performance, availability and reliability or their IT. Finding and retaining the right skill sets to manage critical systems is also a growing factor, particularly in the smaller end of the SME market.”

Shanks Waste Management outsourced the management of their IT infrastructure to Esteem just over a year ago, and level of service was critical to this decision.David Skett, ICT Manager for Shanks UK explains: “Outsourcing provides us with the resources to stay ahead of the competition, and gives us access to experts in new and emerging technologies, as and when we need them. The ever changing and rapid pace of the technology market comes at a cost which makes outsourcing very attractive indeed.”

Outsourcing IT has given many organisations confidence in the efficiency and reliability of their IT systems, without having to finding and retain the skills to manage it on a day to day basis themselves. Joe Connolly adds; “The companies we work with rely extensively on complicated IT systems to run their businesses. Without effective management, their IT infrastructures, and their businesses as a whole therefore, are vulnerable. Outsourcing IT management means that systems are continually working, monitored, efficient and stable at all times.”

Article published: 15/08/2013

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