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IT Outsourcing Statistics 2023 – Outsourcing Trends and Cost/Service Experiences for 11 Key IT Functions

How many IT organizations are outsourcing particular functions and how much work are they actually outsourcing? Is the outsourcing trend up or down? What percentage of the typical IT budget goes to outside service providers, and how do costs and service levels for outsourcing providers compare to doing the same work in-house?

To answer these and other questions, Computer Economics, a division of Avasant Research, has released its IT Outsourcing Statistics report, based on our annual survey of IT organizations in the US, Canada, and Europe.

With 105 pages and 91 figures, this publication provides an analysis of outsourcing statistics for 11 IT functions.

  • Application development
  • Application management
  • Cloud infrastructure management
  • Data center operations
  • Desktop support
  • Disaster recovery
  • Help desk
  • IT security
  • Network operations
  • Systems implementation/integration
  • Web operations

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EXECUTIVE SUMMARY

  • Introduction
  • Key Findings
  • How the Study Measures Outsourcing Activity
  • IT Functions Covered in the Study

PART I: IT OUTSOURCING OVERVIEW

Part I provides an overview of outsourcing activity for all IT functions. We examine spending on outsourcing as a percentage of the IT budget. We then compare and contrast outsourcing activity for 11 IT functions, ranking them by outsourcing frequency, level, and net growth trend. We also use a scatter chart analysis to compare the popularity and potential value of outsourcing each function.

Spending on IT Outsourcing

Figure 1. Plans for Outsourcing in 2023
Figure 2. Plans for Outsourcing in 2023, by Organization Size

Outsourcing Frequency and Level

Figure 3. Percentage of Organizations Outsourcing Function (Frequency)
Figure 4. Percentage of Work Outsourced (Level)
Figure 5. IT Outsourcing Adoption Analysis

Outsourcing Cost and Service Experience

Figure 6. Outsourcing Cost-Success Rate for Each Function
Figure 7. Outsourcing Service-Success Rate for Each Function
Figure 8. IT Outsourcing Value Analysis (Cost-Success v. Service-Success)

Future of IT Outsourcing

Figure 9. Outsourcing Activities and Priorities: IT Outsourcing in the Next Three Years
Figure 10. Outsourcing Activities and Priorities: Number of IT Service Providers in the Next Three Years
Figure 11. Outsourcing Activities and Priorities: IT Outsourcing Contract Size in the Next Three Years
Figure 12. Outsourcing Activities and Priorities: Percentage of Contracts Going to New Providers in the Next Three Years
Figure 13. Outsourcing Activities and Priorities: Benchmarking of Service Provider Contract in the Next Three Years
Figure 14. Most Important Attributes of a Service Provider

PART II: OUTSOURCING PROFILES

Part II provides a detailed outsourcing profile for each of the 11 IT functions. We report the outsourcing frequency, outsourcing level, outsourcing trend, cost experience, and service experience. We also report the outsourcing frequency and level by organization size (small/midsize vs. large) and the outsourcing frequency by industry sector.

Application Development Outsourcing Statistics

Figure 15. Outsourcing Profile: Application Development
Figure 16. Outsourcing Frequency: Application Development
Figure 17. Outsourcing Level: Application Development
Figure 18. Outsourcing Cost Experience: Application Development
Figure 19. Outsourcing Service Experience: Application Development
Figure 20. Outsourcing Frequency and Level by Organization Size: Application Development
Figure 21. Outsourcing Frequency by Sector: Application Development

Application Management Outsourcing Statistics

Figure 22. Outsourcing Profile: Application Management
Figure 23. Outsourcing Frequency: Application Management
Figure 24. Outsourcing Level: Application Management
Figure 25. Outsourcing Cost Experience: Application Management
Figure 26. Outsourcing Service Experience: Application Management
Figure 27. Outsourcing Frequency and Level by Organization Size: Application Management
Figure 28. Outsourcing Frequency by Sector: Application Management

Cloud Infrastructure Management

Figure 29. Outsourcing Profile: Cloud Infrastructure Management
Figure 30. Outsourcing Frequency: Cloud Infrastructure Management
Figure 31. Outsourcing Cost Experience: Cloud Infrastructure Management
Figure 32. Outsourcing Cost Experience: Cloud Infrastructure Management
Figure 33. Outsourcing Service Experience: Cloud Infrastructure Management
Figure 34. Outsourcing Frequency and Level by Organization Size: Cloud Infrastructure Management
Figure 35. Outsourcing Frequency by Sector: Cloud Infrastructure Management

Data Center Operations Outsourcing Statistics

Figure 36. Outsourcing Profile: Data Center Operations
Figure 37. Outsourcing Frequency: Data Center Operations
Figure 38. Outsourcing Level: Data Center Operations
Figure 39. Outsourcing Cost Experience: Data Center Operations
Figure 40. Outsourcing Service Experience: Data Center Operations
Figure 41. Outsourcing Frequency and Level by Organization Size: Data Center Operations
Figure 42. Outsourcing Frequency by Sector: Data Center Operations

Desktop Support Outsourcing Statistics

Figure 43. Outsourcing Profile: Desktop Support
Figure 44. Outsourcing Frequency: Desktop Support
Figure 45. Outsourcing Level: Desktop Support
Figure 46. Outsourcing Cost Experience: Desktop Support
Figure 47. Outsourcing Service Experience: Desktop Support
Figure 48. Outsourcing Frequency and Level by Organization Size: Desktop Support
Figure 49. Outsourcing Frequency by Sector: Desktop Support

Disaster Recovery Services Outsourcing Statistics

Figure 50. Outsourcing Profile: Disaster Recovery Services
Figure 51. Outsourcing Frequency: Disaster Recovery Services
Figure 52. Outsourcing Level: Disaster Recovery Services
Figure 53. Outsourcing Cost Experience: Disaster Recovery Services
Figure 54. Outsourcing Service Experience: Disaster Recovery Services
Figure 55. Outsourcing Frequency and Level by Organization Size: Disaster Recovery Services
Figure 56. Outsourcing Frequency by Sector: Disaster Recovery Services

Help Desk Services Outsourcing Statistics

Figure 57. Outsourcing Profile: Help Desk
Figure 58. Outsourcing Frequency: Help Desk
Figure 59. Outsourcing Level: Help Desk
Figure 60. Outsourcing Cost Experience: Help Desk
Figure 61. Outsourcing Service Experience: Help Desk
Figure 62. Outsourcing Frequency and Level by Organization Size: Help Desk
Figure 63. Outsourcing Frequency by Sector: Help Desk Services

IT Security Outsourcing Statistics

Figure 64. Outsourcing Profile: IT Security
Figure 65. Outsourcing Frequency: IT Security
Figure 66. Outsourcing Level: IT Security
Figure 67. Outsourcing Cost Experience: IT Security
Figure 68. Outsourcing Service Experience: IT Security
Figure 69. Outsourcing Frequency and Level by Organization Size: IT Security
Figure 70. Outsourcing Frequency by Sector: IT Security

Network Operations Outsourcing Statistics

Figure 71. Outsourcing Profile: Network Operations
Figure 72. Outsourcing Frequency: Network Operations
Figure 73. Outsourcing Level: Network Operations
Figure 74. Outsourcing Cost Experience: Network Operations
Figure 75. Outsourcing Service Experience: Network Operations
Figure 76. Outsourcing Frequency and Level by Organization Size: Network Operations
Figure 77. Outsourcing Frequency by Sector: Network Operations

Systems Implementation/Integration Outsourcing Statistics

Figure 78. Outsourcing Profile: Systems Implementation/Integration
Figure 79. Outsourcing Frequency: System Implementation/Integration
Figure 80. Outsourcing Level: System Implementation/Integration
Figure 81. Outsourcing Cost Experience: Systems Implementation/Integration
Figure 82. Outsourcing Service Experience: Systems Implementation/Integration
Figure 83. Outsourcing Frequency and Level by Organization Size: Systems Implementation/Integration
Figure 84. Outsourcing Frequency by Sector: Systems Implementation/Integration

Web Operations Outsourcing Statistics

Figure 85. Outsourcing Profile: Web Operations
Figure 86. Outsourcing Frequency: Web Operations
Figure 87. Outsourcing Level: Web Operations
Figure 88. Outsourcing Cost Experience: Web Operations
Figure 89. Outsourcing Service Experience: Web Operations
Figure 90. Outsourcing Frequency and Level by Organization Size: Web Operations
Figure 91. Outsourcing Frequency by Sector: Web Operations

APPENDIX

Survey Methodology

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