Nearly Two-Thirds of IT Infrastructure Expected to be Outsourced by 2020, According to Savvis' Global Study

Global independent research predicts major shift toward managed services

Jun 08, 2010, 03:00 ET from Savvis, Inc.

ST. LOUIS, June 8 /PRNewswire-FirstCall/ -- An annual study commissioned by Savvis, Inc. (Nasdaq: SVVS), a global leader in cloud infrastructure and hosted IT solutions for enterprises, predicts the number of companies that outsource their IT infrastructure will increase globally from 17 percent today to 64 percent in 2020.

Independent research firm Vanson Bourne in April surveyed more than 600 IT and business decision makers from mid to large enterprises and public sector organizations based in the United States, United Kingdom and Singapore.

Sixty-one percent of respondents believe managing IT in-house provides no competitive advantage and has to stop.

"With the rise in acceptance of outsourcing within the IT industry, and the related economies of scale that accompany the managed services model, businesses are finding it difficult to justify owning their own IT infrastructures," said Bryan Doerr, chief technology officer at Savvis.

The trend away from in-house IT infrastructure can be seen in the study results:

  • United States: In-house IT infrastructure is expected to drop from 82 percent today to 49 percent in 2020.
  • United Kingdom: In-house IT infrastructure is predicted to drop from 90 percent today to just 23 percent in 2020.
  • Singapore: IT infrastructure being controlled in-house is expected to drop from 62 percent today to 38 percent in 2020.

In looking at 2010, organizations cited cost savings (58 percent) and growing revenue (54 percent) as their top strategic priorities. The biggest issue organizations face concerns doing more with less budget (54 percent).

When asked what factors prevent their organizations from outsourcing all elements of their IT infrastructure, survey respondents cited company culture (43 percent) and sunk costs in which IT assets already are paid for and owned (37 percent).

A copy of the Rising to the Challenge report and many of the findings can be found at http://savvis.itleadership.info/.

About Savvis

Savvis, Inc. (NASDAQ: SVVS) is a global leader in cloud infrastructure and hosted IT solutions for enterprises. More than 2,500 unique clients, including 30 of the top 100 companies in the Fortune 500, use Savvis to reduce capital expense, improve service levels and harness the latest advances in cloud computing. For more information, please visit savvis.net.

About the survey

This independent survey was commissioned by Savvis and carried out with 456 chief information officers, chief technology officers, IT directors and heads of IT and 202 chief executive officers, managing directors, directors and senior managers of global mid-size and large organizations based in the United Kingdom, Singapore and United States. The research was conducted by Vanson Bourne, a research-based technology marketing consultancy. This year's study also surveyed 202 senior business decision makers from U.K.- and U.S.-based organizations. Both elements used an online fieldwork methodology, and all research carried out by Vanson Bourne adheres to the latest MRS Code of Conduct. Demographic detailing both respondent communities includes industry sector, country in which the respondents were based and size of business.

SOURCE Savvis, Inc.



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