Singapore companies look to outsourcing

Techgoondu.

The top three cost savings, they say, will come from reducing IT infrastructure costs, implementing a cloud and virtualisation strategy, as well as standardising their IT infrastructure.

Conducted by research firm Vanson Bourne, the survey polled 480 IT decision-makers in Singapore, Germany, France, the US and the UK. The study was commissioned by Savvis, a cloud infrastructure and hosted IT provider.

Only 43% of companies in Singapore host their IT infrastructure in-house, less than the global average of 59%. Outsourcing is expected to bring significant cost savings in the long run, reports Sgentrepreneurs.

However, Singapore firms are found to be purchasing far more capacity than they need. About 70% experience buyer's remorse regarding IT equipment, much higher than the worldwide rate of 43%.

MIS-Asia states that Bill Fathers, president of Savvis, says: “The adoption of outsourced IT infrastructure, in particular managed hosting and cloud computing, is a trend that Savvis has witnessed among our client base.

“Singapore IT leaders are at the forefront of outsourcing adoption, and we expect to see the propensity to outsource increase further over the next five years, as more enterprises experience the benefits it brings,” he adds.