(WEB HOST INDUSTRY REVIEW) — IT services provider Savvis (www.savvis.net) announced on Monday it has released the results of a recent study which reveals that most successful organizations are spending more of their budget on IT infrastructure outsourcing.
The study’s results echoes those of Symantec’s recent 2008 State of the Data Center report, which showed that 45 percent of companies are turning to outsourcing and training to resolve a lack of staffing issue.
Independent research group Vanson Bourne compiled the study in February on behalf of Savvis, in which the company surveyed 314 IT decision makers in the United Kingdom, the United States and Singapore.
The report makes sense on a strategic level for Savvis, as the company provides a range of IT services for outsourcing purposes.
As many as 51 percent of respondents said they believe their companies are doing ‘well’ or ‘very well’ despite the global recession.
According to the press release, the study reveals a “new breed of IT leader has emerged who is forward-thinking and understands how to use technology as a strategic business tool.”
Other key findings found in the study include 67 percent of respondents saying that they are forced to do more with less budget in 2009, while IT organizations have allocated 32 percent more of the total IT budget to infrastructure outsourcing in an effort to survive the recession.
Meanwhile, UK organizations have allocated an average of 17 percent of their IT budget to outsourcing.
In comparison, US organizations have allocated 22 percent, while Singapore organizations have allocated 27 percent.
Fifty-two percent of IT executives said that the greatest cost savings came from reducing infrastructure costs; 49 percent said that reducing staff levels resulted in the greatest cost savings; and 44 percent said that virtualisation strategy contributed to the greatest cost savings.
“Savvis’ research shows that the IT leaders who report that their organisations are ‘doing well’ have taken a number of key measures to enable their companies to succeed during the downturn,” says Melanie Posey, an industry analyst at IDC. “A key component of this is adoption of an outsourced IT infrastructure model. In contrast, IT leaders whose businesses are not doing well are focused to a greater extent on cost reduction rather than organisational transformation.”
Sixty two percent of respondents cited trust and flexibility as key criteria for selecting an IT infrastructure supplier, while 68 percent found cost the most important factor.
Fifty-four percent of organizations are also most likely to re-evaluate IT infrastructure outsourcing decisions to reduce costs, 39 percent of organizations when a new technology emerges and 39 percent said they would re-evaluate their outsourcing if they are unsatisfied with their current supplier relationships.
Finally, the survey found that cloud computing played a strong focus among IT executives with 83 percent of respondents in Singapore, 65 percent in the UK and 72 percent in the US saying that the technology will play an important future role in helping companies gain efficiencies and reduce cost.
Savvis recently announced its first earnings report since Greg Freiberg assumed the role of senior vice president and chief financial officer.
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