Research conducted by analyst Cumulus found that a typical large company wastes up to 1500 man hours every year because firms under-estimate the amount of time, equipment, services management and planning needed to keep their IT infrastructure on track.
Scott Smith, managing partner at analyst Cumulus Research Partners, said IT managers still failed to realise the impact of IT systems going down on the rest of the business.
‘What’s often not taken into account is how much non-IT time is taken up by this. IT decisions aren’t made in a vacuum. If you add it all up it becomes quite substantial,’ Smith said.
Stephen Scott, UK managing director of internet service provider PSINet, which sponsored the research, said: ‘Five or six years ago, outsourced IT wasn’t so robust but now it’s unaffordable to insource. It boils down to what is your core business and the perceived exposure of handing that over to a third party. There’s a level of balance required.’
But Richard Jarvis, European chief information officer of media company Diversified Agency Service said emotional factors continued to play a major role in any decision about outsourcing.
‘When you get into the small and medium enterprise market, emotions are still very strong and senior management is still nervous about what they are prepared to let go of.’
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