IT leaders expect to outsource 70 percent of their IT infrastructure by 2018, according to a Savvis report released on Thursday.
The report, titled “Global IT Trends: IT Outsourcing Fuels Business Growth,” is the fifth annual report by Savvis on outsourcing trends, and was conducted from a survey of 550 IT decision makers from around the world by research firm Vanson Bourne.
The study found that in-house IT infrastructure is currently most common, at 65 percent, however there is a shift expected over the next few years. IT decision makers expect the preferred environment in two years will be colocation, with managed services becoming most popular in five years and cloud approaches surpassing the rest after that.
“IT leaders make clear that hybrid approaches to outsourcing guide the way to cloud,” Jeff Von Deylen, president, Savvis said. “Clearly, cloud is part of the picture but it’s not the whole picture. As businesses grow and move more IT infrastructure to outsourcing providers, they will adopt a strategic mix of colocation, managed-hosting and cloud services.”
The report also found that organizations are expecting revenue to grow by 8.5 percent this year, and by an average of 11.5 percent in 2014. Those companies predicting higher growth rates tend to use in-house private cloud, colocation, or managed hosting environments for the majority of their IT.
“Cost reduction or containment” is the top benefit of outsourcing IT at 42 percent, just ahead of “improved quality of service” and “infrastructure scalability and flexibility.”
“As organizations turn to outsourcing to drive growth, they will find value in service providers that can enhance their agility through a variety of secure, scalable infrastructure models and flexible end-to-end solutions,” Von Deylen said.
Slightly less than half of respondents use cloud for intranet, website and microsite applications, while slightly more than half use it for storage and email applications, and more than 90 percent use some type of cloud service.
Savvis has been positioning itself for the changes predicted in the study, with a cloud data center launched in July, and a partnership with VMare announced in late August, both to meet hybrid demand. Savvis also recently won a contract with the FCC to outsource its cloud hosting.