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More Than 75% of All Outsourced Projects in the United Kingdom Are Mobile, Research Says
Mobile computing is the most outsourced area, nearshore is the most popular destination and own development team is the most popular business model among the UK outsourcing companies, according to a recent survey by IT Sourcing Europe.
According to the research findings, this year the highest demand for the outsourced IT / software development services comes from b2b focused IT / software companies (almost 65%), financial services companies (nearly 20%), b2c focused IT / software companies (around 15%) and mobile development companies (15%).
Regarding the major factors driving corporate decisions to outsource software development in the United Kingdom, in 2012 they are:
• Reduction of operating expenses (reported by 70% of companies, which is up 5% from 2011),
• Focus on core competences (reported by 50% of respondents, which is up almost 20% from 2011), and
• Freeing in-house IT resources for other business critical purposes (reported by 40% of participants, which is up 17% from last year)
As the research shows, the top three challenges facing outsourcing companies in the United Kingdom in 2012 are:
• Poor communication with their ITO service providers (reported by over 65% of respondents, which is almost double the response rate of 2011),
• Change management (reported by almost 35% of survey participants, which is up 10% from 2011), and
• Poor project management on vendor’s side (reported by almost 35% of those polled, which is up around 13% from last year)
In 2011, the Number One challenge was poor quality of delivered software products.
Other interesting research findings include:
• More than 35% of the UK businesses outsource their IT / software development nearshore (to Central and Eastern Europe), while 22% of companies outsource offshore (to South Asia and Asia Pacific),
• The volume of mobile development outsourcing has skyrocketed in 2012, with 76% of all UK companies polled reporting to outsource their mobile computing solutions,
• The volume of Cloud-sourcing projects has increased by almost 10% this year, compared to 2011,
Regarding the ITO business models used, more than 55% of companies polled admit having own software development setups, while cumulative 45% of companies engage with their service providers via “traditional”
According to IT Sourcing Europe’s research results, the majority of the UK outsourcing companies (almost 45%) pay up to 25% of overheads and 40% of outsourcers manage to save 10% to 24% of operating costs via their ITO engagements.
The findings of the survey of non-outsourcing companies suggest that the future outsourcing decisions in the United Kingdom will be driven by:
• Slow time-to-market (reported by over 65% of companies),
• High cost of domestic IT resources (reported by over 55% of companies), and
• Scarce local IT Talent pool (reported by almost 35% of respondents)
More survey results are available at http://www.blog.ciklum.com/