Final Report: Providers

10. IT Outsourcing

Two-thirds of respondents' facilities currently outsource IT functions. Respondents predict a decrease in IT outsourcing in two years. Despite last year's prediction of a decrease in IT outsourcing, survey data indicate an increase in outsourcing of various IT functions over last year.

Approximately 67 percent of this year's survey respondents reported that they outsource at least a portion of their facility's IT functions. Web site maintenance and development were again the most frequently reported outsourced IT functions, at 34 percent-a 9 percent increase compared with last year. Additionally, the number of respondents who reported that their facilities will outsource Web site maintenance and development in the next two years increased 4 percent, from 17 percent to 21 percent. Applications development (19 percent) and the partial tasking of one or more functions (14 percent) continue to be among the top IT functions outsourced. The partial tasking of one or more functions is down from last year's 19 percent.

More than 43 percent of respondents indicated that their facilities do not plan to outsource any IT functions in the next two years, compared with 32 percent last year. A comparison between the 2002 and 2001 survey respondents' predictions shows that although 2001 respondents also predicted a decrease in IT outsourcing in the next two years, 2002 survey data demonstrate an increase in outsourcing various IT functions over last year. The functions that respondents most frequently indicated their facilities plan to outsource in the next two years are Web site maintenance and development (21 percent), applications development (11 percent), system installation (10 percent), and partial tasking of one or more functions (10 percent).

Figures:

Figure 22. IT Functions Currently Outsourced
Figure 23. Current and Future Plans for Outsourcing

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