CIOs to change approach to IT outsourcing

CIOs to change approach to IT outsourcing

Nearly three-quarters of chief information officers (CIOs) admit they intend to change their IT outsourcing relationships over the course of the next three years, a recent report has suggested.

Market research firm Gartner claims that an increasing number of businesses are beginning to alter the way in which they approach how they operate when adopting a number of digital technologies.

As a result many firms are increasingly looking for suppliers of IT services to help them make the most of these new technologies, at a price that is right for their enterprise.

This means that the working relationships between many businesses and suppliers could be about to change. 

The firm claims that suppliers may therefore need to change their approach to the way in which they provide services to their customers, which could lead to a number of challenges, as well as opportunities.

Analyst Eric Rocco said: “Market share will shift to service providers able to help clients respond to the business and IT opportunities and challenges that are overwhelming more than half of organisations today. Service providers need to convert this picture into an opportunity rather than a threat."

He added that the digital business revolution is driven by the popularity of cloud, social, analytics, and mobile.

According to Gartner's figures, the overall IT services market is set to grow by 4.6 per cent over the course of the next 12 months, with the influence of outsourced services poised to play a key role.

Two of the fastest growing areas of the industry are cloud-based infrastructure as a service (IaaS) and business process as a service (BPaaS), which this year have already expanded by 44.9 per cent and 12.4 per cent respectively.

And, according to a report by Computer Week, even traditionally conservative sectors such as lay and insurance are re-evaluating their relationships with outsourcers, in order to enhance their digital infrastructure and customer relationships.