The amount of money businesses are spending on outsourcing is set to grow in 2010, as a new report has shown over half of European businesses plan to increase their involvement.
The report from analyst firm Gartner showed 53 per cent of organisations in Europe plan to outsource more this year, with 40 per cent specifically citing external IT services.
The number of organisations spending 50 per cent upwards of their IT budgets externally is also on the rise, according to the report, but Claudio Da Rold, vice president and analyst at Gartner, claimed pressures on businesses to control expenditure was still strong.
"Although 40 per cent of respondents said that they will increase the external share of their budget, only 24 per cent said that they will increase the budget for providers, and almost a quarter of organisations still expect that their IT services budget will continue to decrease in 2010," he said.
A more varied set of businesses are now considering outsourcing as an option, with an increasing amount of smaller firms keen on taking the leap too, the report suggests.
The survey showed 14.7 per cent of companies with an IT budget of less than 1 million were interested in outsourcing up from 6.1 per cent in the same period last year.
"Organisations in Europe are expecting or are in need of growth, but they are also still highly cautious," added Da Rold.
"Although we conducted this survey in the first quarter of 2010, before the start of the Greek financial crisis, we believe that the cautious expectation of growth will continue in Europe beyond 2010."
He concluded: "Regardless of the future direction of the economy, European businesses and their service providers need to optimise their multi-sourced environments, while increasingly adopting industrialised IT services."
-
Bigger salaries, more burnout: Is the CISO role in crisis?In-depth CISOs are more stressed than ever before – but why is this and what can be done?
-
Cheap cyber crime kits can be bought on the dark web for less than $25News Research from NordVPN shows phishing kits are now widely available on the dark web and via messaging apps like Telegram, and are often selling for less than $25.
-
Nearly half of all digital initiatives still fail – here’s how you can learn from the ‘digital vanguard’ and deliver successNews With most digital initiatives are failing to deliver, CIOs are urged to work more closely with other executives
-
IT services spending set to surge in 2025 as CIOs shift to AI partner solutionsNews Organizations are set to shift from buying generative AI solutions to implementing partner solutions, according to Gartner
-
Magic quadrant for finance and accounting business process outsourcing 2024whitepaper Evaluate BPO providers’ ability to reduce costs
-
Businesses still don’t know who’s accountable for AI at executive levelNews Executives are unclear on where the buck stops in terms of AI management
-
Gartner reveals the top trends for government technology use in 2024News Five key areas that public sector CIOs will need to address to improve citizen services
-
Return to office mandates can be divisive - here are three things business leaders can do to help smooth the transitionAnalysis With return to office mandates having sparked major spats between workers and employers, leaders need to consider how they can make changes attractive and effective
-
Global IT spending set to reach $5 trillion in 2024 amid optimistic industry outlookNews IT spending growth in 2024 is expected to be more than double that of 2023
-
What will drive IT spending in 2024?In-depth Generative AI spending is unlikely to be high despite the hype, but sustainable technology will become a bigger priority.
