Why Are Companies Moving IT Back in House?

 
 
By Dennis McCafferty  |  Posted 05-31-2017 Email
 
 
 
 
 
 
 
 
 
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    Why Are Companies Moving IT Back in House?
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    Why Are Companies Moving IT Back in House?

    Third-party service providers play a critical role in enterprise IT, but many organizations are planning to increase their use of internal resources this year.
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    Inside Job
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    Inside Job

    Half of the IT leaders and other decision-makers surveyed said their company plans to increase its use of IT services that are handled in-house this year.
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    Outside Assistance
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    Outside Assistance

    75% said their organization currently employs third-party service providers for some IT needs.
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    Top IT Services Provided by Third Parties
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    Top IT Services Provided by Third Parties

    Data security: 47%, Cloud tech integration: 43%, Mobile support: 40%, Network management: 38%, Data management: 35%
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    Home Front, Part I
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    Home Front, Part I

    Half of the survey respondents said their organization partners "mostly" or "only" with domestic IT service providers, compared with just 13% who partner "mostly" or "only" with offshore providers.
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    Home Front, Part II
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    Home Front, Part II

    78% said their organization will lean toward partnering with domestic IT service providers this year, while only 22% said they'll favor offshore partners.
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    Benefits of Using Domestic IT Service Providers
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    Benefits of Using Domestic IT Service Providers

    Quality of service: 38%, Communications: 23%, Expertise: 14%
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    Challenges of Using Domestic IT Service Providers
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    Challenges of Using Domestic IT Service Providers

    Cost: 34%, Security: 20%, High employee turnover: 10%
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    Benefits of Using Offshore IT Service Providers
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    Benefits of Using Offshore IT Service Providers

    Value: 36%, Quality of service: 23%, Expertise: 21%
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    Challenges of Using Offshore IT Service Providers
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    Challenges of Using Offshore IT Service Providers

    Communications: 26%, Security: 22%, Costs: 11%
 

While a majority of organizations employ third-party service providers for some IT needs, a significant number of them plan to increase their use of in-house IT services in 2017, according to a recent survey from Clutch. The accompanying report, "IT Services for the Enterprise: Sourcing Decisions," indicates that there's plenty of room for both internal and outside parties to play a role. However, when selecting a service partner, many companies prefer to work with firms that are based domestically. As a result, they benefit from better quality of service, communications and expertise, according to the findings. When dealing with offshore partners, on the other hand, companies may encounter challenges in the form of communications and security concerns. "It is clear that IT services are valued at a premium in the enterprise, particularly those [affecting] mobility and data management," the report states. "Given the importance of IT, the issue of who to trust to address IT services needs now qualifies as a major concern and strategic initiative among enterprise decision-makers." More than 580 enterprise IT leaders and other decision-makers took part in the research.

 
 
 
 
 
Dennis McCafferty is a freelance writer for Baseline Magazine.

 
 
 
 
 
 

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