Bluewolf: Enterprises, startups alike turning more towards IT outsourcing

Bluewolf: Enterprises, startups alike turning more towards IT outsourcing

Summary: A new report finds that IT outsourcing is becoming more popular with startups and enterprise companies alike.


Approximately 32 percent of businesses will increase IT outsourcing investments in the next 12 to 18 months, according to CRM consultancy firm Bluewolf.

Bluewolf's latest report aims to provide a comprehensive look at how outsourcing is being employed within the IT industry.

The big finding is the growing trend of independent contractors within the tech industry -- that this is becoming a more attractive option for both enterprise and startup businesses.


This is due in part to a few trends, such as social and mobile, but the cloud in particular is heavily influencing this shift towards IT outsourcing.

This also affects which tasks are usually outsourced. Application services, in particular, are really popular as Bluewolf reports 73 percent of businesses outsource these to the likes of, Google Apps, and Amazon Web Services.

From there, the most commonly outsourced services are developing applications (46 percent) and application maintenance (26 percent). Furthemore, Bluewolf found that approximately 16 percent of data center operations are now managed in the cloud.

Bluewolf argued in the report that "applications enable companies and their workforces to be efficient, responsive, and to deliver consistent value to their customers."

Thus, these appications need to be ready for scaling and customizing, both of which the cloud can provide.

For managing IT infrastructures, the figure drops off to about 62 percent overall. Roughly 23 percent of businesses are outsourcing data center operations while 17 percent are doing so for disaster recovery and database administration.


Some of the other themes covered in Bluewolf's report include the kinds of outsourcing models being employed, how outsourcing has evolved from a cost-cutting tactic into a business agility strategy, and the evolving state of offshoring, which sends jobs overseas in an effort to cut costs.

Bluewolf analysts acknowledged that IT security is typically "one of the last functions to be considered for outsourcing," but that the rise of outsourcing partners specializing in 24/7 data and network security is causing some CIOs to ponder outsourcing to augment existing teams.

For reference, Bluewolf surveyed over 200 IT decision-makers from companies ranging from small businesses to the enterprise level. The report is also said to be "enhanced by intelligence from thousands of contract IT
placements Bluewolf has made" between May 2011 to May 2012 along with more than 4,000 cloud-based technology implementations."

Bluewolf's complete 2012 State of IT Outsourcing report is available to download now.

Screenshots via Bluewolf

Topics: IT Employment, IT Priorities, Start-Ups, Enterprise 2.0, SMBs

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.


Log in or register to join the discussion
  • Virtualemployee

    A truly researched based article on IT outsourcing trends. Another trend that is fast catching up with SMEs and start ups is hiring of remotely working dedicated IT resources. Smaller companies often have fluctuating demands for IT resources; therefore, these companies go for a service provider where they can increase or decrease the size of their IT team according to their requirement. For more information on this model of IT outsourcing, click on the link:
    • SPAM much?

      This article is nothing but propaganda by outsourcing firms. The bulk of companies that I have seen outsource have come to regret it.
  • The downward spiral continues

    Has anybody thought long-term? Or will more government bailouts be the solution? And, if not, when the crash happens, what then?