Third of organisations to outsource more IT amid talent shortage
The results of PA's UK IT sourcing study, in partnership with Whitelane Research are featured in Computer Weekly. The study investigates more than 660 unique IT sourcing relationships and more than 575 cloud sourcing relationships held by over 270 participants of the top IT spending organisations in the UK.
The study shows that a third (32%) of UK organisations plan to outsource more of their IT over the next two years. 50% of the surveyed organisations plan to outsource at their current rate over the next two years, while 18% plan to decrease outsourcing.
The article explains that according to 57% of the survey respondents, the reason for this is not to cut costs, but to allow organisations to focus on their core business and to access talent.
Manish Khandelwal, IT transformation expert at PA Consulting, explains that the pandemic years have accelerated the pace of digital transformation across sectors.
He goes on to say: “The outsourcing industry has used the pandemic years as an opportunity to transform its operating model and has emerged stronger. The war for talent has reached unprecedented levels and will only intensify in the short term, however the industry has the unique opportunity to drive global workforce transformation.”
“As the world economy enters a potentially turbulent period, winners will be those that are able to meaningfully co-create with clients, help them reduce time to market and contribute to both the top line and the bottom line.”
The article concludes by saying that the study found that transition and change management is one of their weakest capabilities among respondent organisations, with 29% stating that that significant improvements are required. It found that in-house capability is the main challenge to deliver complex transitions for 62% of respondents.
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