IT Outsourcing/Satisfaction with Vendor Performance

Nearly three-quarters of respondents’ facilities currently outsource one or more IT functions. The use of outsourcing over the next two years is not expected to decrease.

Nearly three-quarters of respondents (70 percent) reported their organization outsources at least one IT function; this compares to 71 percent in 2004 and 70 percent in 2003. Web site maintenance and development (43 percent), applications development (22 percent) and ASP services (21 percent) were the most frequently outsourced areas.

Among those respondents that reported their organization uses outsourcing services, just over one-third (36 percent) report that their organization outsources only one function. Another 48 percent report that their organization outsources between two and four functions. The remaining 16 percent of respondents indicate that they outsource at least five of their organization’s IT functions.

Approximately 71 percent of respondents reported that they will outsource one or more IT functions in the next two years; this is up slightly from the 70 percent of respondents who indicated that they would outsource in 2004. Web site maintenance and development (20 percent) and applications development (20 percent) are the top two functions that will be outsourced in the next two years. The help desk and ASP services were each identified by 16 percent of respondents.

Nearly two-thirds of respondents (69 percent) report that they are satisfied or very satisfied with the products and/or services they receive from suppliers, applications vendors and consulting firms. This is down from 70 percent in 2004. Only seven percent of respondents indicate that they are either dissatisfied or very dissatisfied with the products and/or services that they receive.

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