More outsourcing ahead for technology in Australian firms

Australian organisations are set to continue outsourcing more of their technology infrastructure and software applications, according to new research.

Australian organisations are set to continue outsourcing more of their technology infrastructure and software applications, according to new research.

The annual study by benchmarking and sourcing consultants ITNewcom interviewed 60 executives at top IT spenders in Australia about their outsourcing intentions. It found 75 per cent of organisations already outsource some applications, while 85 per cent outsource infrastructure.

"These totals are likely to increase as the study reveals that 43 per cent of organisations intend to outsource more applications services and 40 per cent intend to outsource more of their infrastructure," ITNewcom's research director, Scott Stewart, said.

The majority of organisations also expect to make some changes to their outsourcing provider arrangement within the next two years, with only 22 per cent of public-sector organisations and 29 per cent of private-sector organisations not intending to change their present sourcing mix, Mr Stewart said. "Notably the public-sector agencies have greater intention to outsource more across all service lines than their private-sector counterparts. So much so that offshoring is now being considered."

ITNewcom's study found that 39 per cent of public-sector agencies were seriously considering offshoring some application needs.

Gartner analyst Rolf Jester said outsourcing was growing faster than insourcing - bringing responsibility for IT back in-house.

ITNewcom's study found some organisations intended to insource over the next two years; 21 per cent of private-sector organisations intended to insource more applications services, while 17 per cent intended to insource more of their IT infrastructure.