IT Outsourcing in the UK is a market that continues to both grow and mature. This growth, however, is steady rather than quick as 35% of companies are outsourcing more than last year. However, 22% of companies who took part in the survey planned to reduce their outsourcing.
So, what does this mean for IT Outsourcing in the UK? Read on to find out more about the survey by Whitelane Research.
About the Survey
This survey that took place in collaboration with PA consulting looked at 800 separate contracts for IT outsourcing. The spending from these 800 contracts was more than 15 billion pounds, making it the most comprehensive survey of its type to date.
IT Outsourcing UK: Automation and Robotics
Automation, robotics and AI are all crucial factors when looking at the findings of the survey. In general, IT provider satisfaction remains very positive, although there is some volatility between different providers.
IT Outsourcing UK: A Tipping Point for Service Providers
There are many prediction and forecasts that suggest that IT outsourcing may have reached a tipping point. Some suggest that the end for service providers is nigh. But, the reality is far more complicated than this. Robotics, AI and Automation are new technologies that are just leveraging. They are only now starting to affect the outsourcing market. So, it is difficult to predict what the future will bring. A complicated journey lies ahead, and although 22% of companies in the survey say they will outsource less next year, we will have to wait and see.
IT Outsourcing UK: Key Report Findings
Although 22% of the contracts surveyed suggested they would outsource less in the future, 35% planned to outsource more. As a result, this implies that the IT outsourcing market will still grow, albeit at a slower pace than in recent years. 69% of companies who outsource do so to cut down on their IT costs. 64% of the companies surveyed also said that business transformation played a large part in their reasons to outsource.
So, why are 22% of those surveyed planning to outsource less? It is because this drop is a result of mature clients rebalancing their in-house and outsourced services. Furthermore, they also see outsourcing as a barrier that is slowing down the agility of their workforce. The use of robotics and automation is one area that is unstable in the IT outsourcing industry. We expect change, and few companies realise their full potential at this time.
The Cloud is one reason why some companies believe that they will outsource to IT providers less in the future and will try to go it alone. Amazon and Microsoft are both highly rated, and customer satisfaction is very high. Flexible options with Cloud IT solutions that can save you money are attractive at this time.
One interesting point to be noted from the survey is that almost a quarter of the companies involved are not entirely satisfied with their current IT solutions. Poor execution is stopping many from being content with the running of their IT operations.
The Future of IT Outsourcing UK
Cloud services are well established and provide an alternative to IT outsourcing for smaller sized operations. Although using Cloud services can be limiting, clients often welcome the simplicity and a drop in price from their IT outsourced provider.
The footprint from AWS and Microsoft will continue to grow steadily. As a result, this could lead to a new set of challenges, where skills are missing within an in-house department.
Robotics, AI, and automation will continue to grow. At present, only about half of the clients are using these technologies. Adoption and integration of these technologies will be imperative to the forward growth of many companies.
Some established providers are struggling to perform for their clients. Clients expect more and more daily, from new technologies as well as from cloud services. The companies that will excel in IT outsourcing will find ways of providing this service.
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