Outsourced IT services have increased in popularity for a number of reasons; improved resilience and knowledge, increased control, upgraded security and of cost a reduction in costs. But how much weight does cost-cutting have when businesses decide to outsource their IT systems? According to recent detailed research carried out by KPMG, reducing costs is becoming less of a reason to outsource IT services.
In the ‘2012 UK Service Provider Performance and Satisfaction study,’ it was found that 70% of businesses are primarily influenced by reducing costs, when making outsourcing decisions. This is a significant reduction from the 83% recorded in the last survey in 2010.
The result is calculated from the input of over 200 participants. The results also showed that 46% of the sample population said the reason they outsourced was because of better quality of services, whilst 51% attributed outsourcing to a lack of in-house skills. Lee Ayling of KMPG’s shared services stated that “just going for a low-cost option isn’t the de facto reason to outsource anymore. Companies are now looking at how outsourcing helps improve the quality of service they can offer to customers."
"At the same time a thirst for quality improvement means they want access to the skills that may be missing in house and the ability to respond rapidly to change.”
The expected figure for reduction in cost was expected to be in the mid-80s. However, the implementation of new technology has seen the need for a rise in specialist IT skills, meaning outsourced IT services has increased alongside the complexity of today’s IT systems.
The survey also showed that 56% of end users were either satisfied or very satisfied with their current IT service provided. 31% were somewhat satisfied whilst 13% were unsatisfied.
Ayling also added that “the survey highlights that buyers are now using multiple service providers where they didn’t before - hence service providers have to respond to shifting preferences for how IT is delivered if the current trend is set to continue,” he said.
On the other hand, the study also revealed that those who outsourced IT services are currently unhappy with the performance of the provider. A big percentage of providers are apparently failing to innovate and take advantage of new opportunities.
The Bunker are one such company who continue to innovate to provide the best services for their clients. The Bunker offer outsourced IT services which are purposefully designed to enable customers to align their IT functions to their core business needs. For more information, visit http://www.thebunker.net.