New research findings announced today reveal that most successful organisations allocate more budget to IT infrastructure outsourcing. Independent researchers, Vanson Bourne, compiled the study in February 2009 for Savvis, a global leader in IT infrastructure services for business applications.
Amongst the 314 IT decision makers surveyed in the United Kingdom, the United States and Singapore, as many as 51% think their companies are doing ‘well’ or ‘very well’ despite the global recession. Deeper analysis reveals a new breed of IT leader has emerged who is forward-thinking and understands how to use technology as a strategic business tool.
Key findings included:
•67% of respondents state they are having to do more with less budget in 2009
•32% more of the total IT budget is allocated to infrastructure outsourcing by IT organisations self identified as succeeding in the downturn
•17% of the IT budget is on average attributed to outsourcing in the UK, 22% in the US and 27% in Singapore
•52% of IT executives noted that the greatest cost savings will emanate from reducing infrastructure costs, reducing staff levels (49%) and a virtualisation strategy (44%)
“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. A key component of this is adoption of an outsourced IT infrastructure model," explains Melanie Posey, an industry analyst at IDC. "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 stated that trust and flexibility are key criteria of selecting an IT infrastructure supplier. Unsurprisingly, 68% found cost the most important factor. Organisations are also most likely to re-evaluate IT infrastructure outsourcing decisions to reduce costs (54%), when a new technology emerges (39%) or if they are unsatisfied with their current supplier relationships (39%).
“Establishing and maintaining close working relationships with your suppliers is perhaps the most powerful thing you can do. IT leaders are sometimes reluctant to fully leverage their vendors' expertise, but I would urge them to do so because relationships with suppliers can provide much needed advice and expertise, which is invaluable in today's business climate,” advised Posey.
The survey affirmed strong interest in Cloud Computing amongst IT executives with 83% of respondents in Singapore, 65% in the UK and 72% in the US stating that Cloud Computing will play an important future role in helping companies gain efficiencies and reduce cost.
“The survey confirms that organisations who outsource more IT infrastructure services are doing better than their counterparts by focusing IT resource on developing and managing business critical applications,” said Bryan Doerr, Chief Technology Officer at Savvis. “Many IT leaders are being forced to do more with less budget in 2009. Cloud Computing can help businesses achieve cost savings and efficiencies, and gain cost, control and end-user experience metrics, often in combination with traditional managed services.” added Doerr.
NOTES TO EDITORS
About the Survey and Vanson Bourne This independent survey was carried out with 314 CIOs, CTOs, IT Directors and Heads of IT of global businesses based in the UK, Singapore and USA. The research was conducted between January and February 2009 by Vanson Bourne, a specialist research-based technology marketing consultancy offering clients analysis and advice based on incisive and rigorous research into their market environment. The research used an online fieldwork methodology and all research carried out by Vanson Bourne adheres to the latest MRS Code of Conduct. Demographic detailing includes industry sector, country in which the respondents were based and size of business.
Savvis, Inc. (NASDAQ:SVVS) is an outsourcing provider of managed computing and network infrastructure for IT applications. By outsourcing to Savvis, enterprises can focus on their core business while Savvis ensures the quality of their IT infrastructure. Leading IT organizations around the world have selected Savvis to help them improve their service levels, reduce capital expense and deal with the rising costs of bandwidth, energy, real estate, staff and expertise. As a pioneer in utility computing, Savvis understands and harnesses the latest advances in technology like virtualization, cloud computing and support process automation. For more information about Savvis, visit www.savvis.net
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Savvis Forward-Looking Statements
This document may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from Savvis’ expectations. Certain factors that could affect actual results are set forth as risk factors in Savvis’ SEC reports and filings, including its annual report on Form 10-K and all subsequent filings as well as the risk that potential product cost and performance benefits may not be realised for any particular customer. Savvis assumes no obligation to update or supplement forward-looking statements.