Infrastructure outsourcing is helping IT leaders weather the downturn

Businesses outsourcing IT infrastructure feel more confident to weather the downturn

Businesses that are outsourcing IT infrastructure services are faring better than those focused on the internally developing and managing business critical applications, according to research.

Some 51 per cent of 314 IT managers polled by research firm Vanson Bourne in the UK, the United States and Singapore think their companies are doing ‘well’ or ‘very well’ despite the global downturn.

The research commissioned by Savvis suggests that optimistic attitude is due to the emergence of a “new breed” of IT leader who understands how to use technology as a strategic business tool.

“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 – a key component of this is adoption of an outsourced IT infrastructure model,” said IDC analyst Melanie Posey.

"In contrast, IT leaders whose businesses are not doing well are focused to a greater extent on cost reduction rather than organisational transformation," said Posey.

When asked about the new dynamics of IT management under the recession, 67 per cent of those polled said they are having to do more with less budget in 2009 and 32 per cent said that more of the total IT budget is allocated to infrastructure outsourcing, channeled to IT firms that have a track record of success.

More than half (52 per cent) of IT executives said the cost savings they generate have largely come from reducing infrastructure cost; 42 per cent said reducing staff levels had the greatest impact; and a virtualisation strategy was cited by 44 per cent.

An average of 17 per cent of IT budgets in the UK is allocated to outsourcing, the survey says.