Bluewolf, a global consulting firm, released its “State of IT Outsourcing Report” for 2012 to 2013, which shows that the IT outsourcing market is growing.
Based on a survey of CIOs and other IT decision makers, and enhanced by intelligence from thousands of technology staffing placements, cloud deployments and managed services contracts, Bluewolf found that CIOs, directors, and managers are shifting away from traditional staffing methodologies. Most notably, they’re embracing an “elastic workforce” by increasing their reliance on multi-sourcing models to deliver agile talent and capabilities to their businesses.
“The growing importance of the speed with which a business leverages new technologies is creating a new form of outsourcing in which finding the right people at the right moment is paramount,” said Michael Kirven, Co-founder, Bluewolf. “CIOs are looking to the elastic workforce to access not only more talent, but also a specialized pool of workers at the top of their game that offer an outsider’s perspective.”
Focusing on the frequency of IT services being outsourced for application and infrastructure needs, and the sourcing models used, Bluewolf’s survey found:
- The IT outsourcing market is growing: 32% of respondents will increase IT outsourcing investments, and 48% will hire more contractors, rather than full-time staff, in the next 12-18 months.
- On average, 48% of outsourcing budgets are allocated towards application services.
- 17% of all outsourced data center operations are managed in the cloud.
- Cloud computing is partially driving outsourcing growth, as more companies use applications from the likes of Salesforce, Google and Workday.
- Managed services is the #1 outsourcing strategy for Disaster Recovery, Web/eCommerce and IT Security services.
- SMB’s outsource infrastructure services more frequently in order to leverage economies of scale.
“CIOs dealing with cloud, big data, social enterprise and mobile face the challenge of not being able to find top talent fast enough,” continued Kirven. “Companies who don’t modernize both their technology and how they access talent face the possibility of extinction.”
The Latest
The use of hybrid multicloud models is forecasted to double over the next one to three years as IT decision makers are facing new pressures to modernize IT infrastructures because of drivers like AI, security, and sustainability, according to the Enterprise Cloud Index (ECI) report from Nutanix ...
Over the last 20 years Digital Employee Experience has become a necessity for companies committed to digital transformation and improving IT experiences. In fact, by 2025, more than 50% of IT organizations will use digital employee experience to prioritize and measure digital initiative success ...
While most companies are now deploying cloud-based technologies, the 2024 Secure Cloud Networking Field Report from Aviatrix found that there is a silent struggle to maximize value from those investments. Many of the challenges organizations have faced over the past several years have evolved, but continue today ...
In our latest research, Cisco's The App Attention Index 2023: Beware the Application Generation, 62% of consumers report their expectations for digital experiences are far higher than they were two years ago, and 64% state they are less forgiving of poor digital services than they were just 12 months ago ...
In MEAN TIME TO INSIGHT Episode 5, Shamus McGillicuddy, VP of Research, Network Infrastructure and Operations, at EMA discusses the network source of truth ...
A vast majority (89%) of organizations have rapidly expanded their technology in the past few years and three quarters (76%) say it's brought with it increased "chaos" that they have to manage, according to Situation Report 2024: Managing Technology Chaos from Software AG ...
In 2024 the number one challenge facing IT teams is a lack of skilled workers, and many are turning to automation as an answer, according to IT Trends: 2024 Industry Report ...
Organizations are continuing to embrace multicloud environments and cloud-native architectures to enable rapid transformation and deliver secure innovation. However, despite the speed, scale, and agility enabled by these modern cloud ecosystems, organizations are struggling to manage the explosion of data they create, according to The state of observability 2024: Overcoming complexity through AI-driven analytics and automation strategies, a report from Dynatrace ...
Organizations recognize the value of observability, but only 10% of them are actually practicing full observability of their applications and infrastructure. This is among the key findings from the recently completed Logz.io 2024 Observability Pulse Survey and Report ...
Businesses must adopt a comprehensive Internet Performance Monitoring (IPM) strategy, says Enterprise Management Associates (EMA), a leading IT analyst research firm. This strategy is crucial to bridge the significant observability gap within today's complex IT infrastructures. The recommendation is particularly timely, given that 99% of enterprises are expanding their use of the Internet as a primary connectivity conduit while facing challenges due to the inefficiency of multiple, disjointed monitoring tools, according to Modern Enterprises Must Boost Observability with Internet Performance Monitoring, a new report from EMA and Catchpoint ...
