53 percent of organizations in Europe will outsource more work in 2010, and 40 per cent of organizations are planning to increase their external IT services spending, according to a recent survey by Gartner, Inc.
The survey found that the percentage of organizations spending 50 percent to more than 75 percent of their IT spending on external service providers was on the rise, said a press release.
“However, the results also showed that the pressure on capital and IT operating expenditure is still strong, and European organizations expect providers to deliver further cost reductions,” said Claudio Da Rold, vice president and distinguished analyst at Gartner.
He added that although 40 percent of respondents said that they would increase the external share of their budget, 24 per cent said that they would increase the budget for providers, and almost a quarter of organizations still expected that their IT services budget wpould continue to decrease in 2010.
The online survey was conducted among 206 organizations in Europe during in the first quarter of 2010. The survey was directed at individuals who were involved in decision making on outsourcing and IT services in 2010.
The survey also showed that organizations of all sizes and with IT budgets of various magnitude are now showing an interest in outsourcing. It found that 14.7 percent of organizations with IT budgets of less than €1 million expressed interest in outsourcing, which compares to only 6.1 percent of organizations in this category in 2009.
“Organizations in Europe are expecting - or are in need of - growth, but they are also still highly cautious,” said 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. Regardless of the future direction of the economy, European businesses and their service providers need to optimize their multisourced environments, while increasingly adopting industrialized IT services,” Da Rold added.
The survey found that the percentage of organizations spending 50 percent to more than 75 percent of their IT spending on external service providers was on the rise, said a press release.
“However, the results also showed that the pressure on capital and IT operating expenditure is still strong, and European organizations expect providers to deliver further cost reductions,” said Claudio Da Rold, vice president and distinguished analyst at Gartner.
He added that although 40 percent of respondents said that they would increase the external share of their budget, 24 per cent said that they would increase the budget for providers, and almost a quarter of organizations still expected that their IT services budget wpould continue to decrease in 2010.
The online survey was conducted among 206 organizations in Europe during in the first quarter of 2010. The survey was directed at individuals who were involved in decision making on outsourcing and IT services in 2010.
The survey also showed that organizations of all sizes and with IT budgets of various magnitude are now showing an interest in outsourcing. It found that 14.7 percent of organizations with IT budgets of less than €1 million expressed interest in outsourcing, which compares to only 6.1 percent of organizations in this category in 2009.
“Organizations in Europe are expecting - or are in need of - growth, but they are also still highly cautious,” said 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. Regardless of the future direction of the economy, European businesses and their service providers need to optimize their multisourced environments, while increasingly adopting industrialized IT services,” Da Rold added.
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