The State of IT Outsourcing: The Survey

The admonition against being "penny smart, but pound foolish" is based on the need to exercise wisdom when deciding how to invest resources and how to evaluate all measures of cost and risk in the short and long term.

The reasons and strategies behind outsourcing have changed since 10 years ago when the main selling point was cost. It was the next frontier in cost savings and increased efficiencies in application development and infrastructure support services. Offshoring offered a grand picture of 10-20% savings on labor arbitrage, the ability to focus on core business, and access to an unlimited source of IT experts. Today, with the national talent gap, a competitive tech job market, and rapidly changing business cycles, IT decision-makers are turning toward outsourcing for new reasons.  

Bluewolf’s new benchmark survey on the State of IT Outsourcing asks the question: How are CIOs, Directors and Managers shifting the way that they organize internally and leverage external service providers to deliver capabilities to the business in 2012? Take the survey now + get a 5 starbucks egift.

Preliminary results from our survey reveal these top objectives in outsourcing today:

  •     Access to hard-to-find tech talent
  •     The ability to turn resources on and off
  •     An increase in productivity and profitability

Three other early results show that:

  • 51% of outsourcing budgets are allocated towards application services
  • 17% of outsourced Data Center Operations are managed in the cloud
  • Access to hard-to-find tech talent is the #1 objective for outsourcing

From the initial responses, it is clear that CIOs are re-thinking the strategies around outsourcing. The increased look towards mixed sourcing models, such as staff augmentation, managed services, out-tasking, project-based consulting and cloud service providers, to meet growing demands further shows that outsourcing is becoming more complex.

How are you and your organization outsourcing in 2012? Please comment below.

It's not too late to have your opinion included in the final report. Fill out the survey, get a $5 Starbucks eGiftcard and a free copy of the report (due in July).


Bluewolf, an IBM Company, is a global consulting agency and proven Salesforce strategic partner that builds digital solutions designed to create results. Now.