Most companies plan to keep their budgets flat next year, and when it comes to IT costs, there’s one tactic that companies are doing to reduce costs.
That tactic? Outsourcing more IT functions.
That’s what a survey of 195 IT executives for the Society for Information Management’s annual report of technology trends showed. Companies plan to spend more on IT outsourcing, which seems to be one way they’re keeping costs in check.
The percentage of IT budgets spent on outsourcing increased from 28% in 2011 to 36% in 2012. The survey found outsourcing will still account for 36% of IT budgets in 2013, but offshore outsourcing will grow from 5% to 7%.
Not the only increases
IT salaries are also on the rise. The majority (60%) of companies reported increasing salaries in the past year, while 29% said they stayed the same and 11% said salaries actually went down.
Though 48% said their IT budgets increased from 2011 to 2012, only 46% said they expect their budgets to increase in 2013. The remaining 54% said their budgets will stay the same or be reduced in the coming year.
Are you looking at your IT department and deciding what functions can be outsourced? Or are you looking at other ways to control IT costs? Let us know in the comments below.
