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Data centre outsourcing on the rise in UK: survey

Published:19-November-2008

Businesses in the UK are increasingly outsourcing their data centre services to third party companies, particularly in the current times of financial crisis, according to a survey taken up by Dynamic Markets on behalf of data centre specialist Sentrum.


The research has found that 43% of the 100 respondents surveyed have outsourced data centre space and of them 28% have done so for the first time in the last 12 months. About 35% of companies, which are not outsourcing, have plans to do so in the future.

Dynamic Markets has surveyed 100 senior IT professionals responsible for data centre management in their respective companies spanning various industries.

The organisations have, on an average, outsourced 53% of their data centre requirements to third parties. According to the research, 79% of the IT managers did not believe that outsourcing has diminished their authority, while 29% felt that it has actually increased their control over the IT policies.

An earlier survey taken up by Sentrum and Dynamic Markets in September 2008, has found that while the demand for data centre capacity is increasing, IT professionals are naive about the available options, particularly on issues relating to the cost and control of data centres.

Andy Ruhan, CEO at Sentrum, said: “Data today is seen as a business critical asset in any corporation and the demand for greater levels of data storage and processing are not going to go away despite the current market downturn. Businesses need to continue to plan for the future and the trend that the research clearly shows is that most currently have plans to outsource at least some data centre space within the next year.”

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It’s interesting, but not surprising, to read that over a third of companies plan to outsource in the future and that as much as 28 per cent have done so for the first time in the last 12 months. The current economic situation means that businesses have to concentrate on what they do best and outsource skills which can be covered by vendors. Outsourcing non-core activities has been popular for some time now as a strategy for driving down costs. However, with a recession looming, businesses have to ensure they’re not outsourcing simply to reduce fixed costs. Following this path means that the innovative and transformational nature of outsourcing projects will fall to the wayside. During this period, CIOs and CFOs will feel increasing pressure to cut costs by securing quick outsourcing contracts. Businesses must balance the short-term cost saving tactics, with a long-term plan of continuing innovation. Contracts should not be made in haste, but relationships developed gradually over time, to ensure the culture of the vendor is understood. This is the only way businesses can remain ahead of the game in an increasingly competitive market.
Tom Higgins - 05:15:55 27/11/2008

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