Feeds

IT outsourcing not catching on with small.biz

Why are they missing the boat?

Choosing a cloud hosting partner with confidence

Small firms are falling behind in outsourcing IT functions, a new survey has revealed.

According to research by the Irish Computer Society (ICS), IT outsourcing has become common practice in Irish organisations, with some 72 per cent taking advantage of the services.

Smaller IT departments, however, appear to be holding on to their services inhouse, despite the traditional assumption that these firms would be more likely to farm out their IT applications.

"The fact that small organisations in Ireland are outsourcing IT services less than their larger counterparts perhaps suggests that outsourcing service providers do not focus their sales efforts on smaller firms," author of the study, Brian Kennedy of Lake Communications, said.

"However, a more worrying alternative explanation is that smaller organisations do not yet fully appreciate the relevance of IT in achieving strategic goals and sustainable competitive advantage over the long-term."

The study found that the most popular reason to outsource was to allow firms to offer extra IT services while concentrating on core competencies, rather than an attempt to reduce costs - although cost reduction is a consideration.

Less than four per cent of organisations outsource their IT functions completely. Some of the most outsourced services include hardware maintenance, application development, and application support.

"The complexity of managing information within organisations is increasing, requiring more resources to successfully administer," the study said. "Coupled with this fact is the information technology/information systems functions attempt to align itself closer to the organisation, grow its business value and subsequently move up the value chain. Outsourcing is seen as a method of achieving both of these outcomes."

The main reasons why 28 per cent of the Irish firms questioned haven't opted to outsource IT services are: uncertainty about the providers' ability to supply the required level of service, apprehension about gaining outsourcing benefits and goals, and concerns about the management of the outsourcing provider.

Copyright © 2007, ENN

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.