June 11, 2004

Report: Top companies spend less on IT, more on outsourcing

I'm not sure how much this applies to your small business per se, but I know that larger businesses are increasingly letting others handle their IT work. Could it be, because IT "doesn't matter" and it is a commodity - to be sold to the lowest bidder? In many cases I know for sure that "IT" does matter and matters so much. However for things like tech support, installations, maintenance and other basic IT tasks, I'm thinking that the more someone else can do it for cheaper the better it is.

Computer World is reporting that The best-performing IT departments typically spend less on technology and personnel and take different approaches to outsourcing than do their peers, according to an examination of 200 customer benchmarks being released Monday by The Hackett Group.

Top-rated IT operations on average spend 18% less per end user on technology and operate with 36% fewer staffers than average companies, according to Hackett's benchmarking study. The information in the report is drawn from an analysis of customer benchmarking tests that The Hackett Group conducted over the past 18 months. The data for this study was gathered in March. (full story)

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