98% of Singapore companies to outsource IT infrastructure by 2017

Check out these 3 top reasons behind this decision.

According to a release, within the next five years, 98 percent of Singapore’s IT decision makers will outsource the majority of their IT infrastructure and will opt to move their infrastructure to the cloud, according to an annual independent research study commissioned by Savvis, a CenturyLink company.

Vanson Bourne, an international research firm, surveyed 550 Senior IT decision makers from enterprise organisations across Singapore, Hong Kong, Japan, United States, United Kingdom and Germany.

Singapore IT leaders revealed that their top three reasons for increasing the percentage of outsourced infrastructure are the need to choose operating expenditure over capital expenditure (58 percent), to eliminate dependence on legacy infrastructures (56 percent), and gain transparency and control over cost models (52 percent).

The study, in its fourth year, indicates that Singapore is leading the trend toward IT infrastructure outsourcing. Organisations that currently have the majority of their IT infrastructure in-house are in the minority (42 percent), compared to 56 percent globally.

92 percent of Singapore respondents mentioned that the CIO makes the final decision to outsource infrastructure though 94 percent of Singapore respondents answered that the Vice President or the Director of Infrastructure influences the final decision to outsource infrastructure.

“In the past, the CIO was expected to focus on minimising costs. Today, they are expected to play a more strategic role by creating value for their business,” said Mark Smith, managing director, Savvis Asia. “Companies like Savvis can be a valuable partner to CIOs by helping to support IT infrastructure needs while providing them with the confidence to focus on their core business.”

Additional research highlights indicate that:

Singapore IT leaders mentioned the three key issues they face include gaining efficiencies throughout the company (56 percent), increasing collaboration across the office (46 percent) and focusing resources on activities that will provide a competitive advantage (30 percent)
Singapore IT leaders (70 percent) agreed that ability to scale up and down computer, storage, and bandwidth consumption, in order to manage fluctuating demand, is the top benefit of outsourcing IT infrastructure
Of the IT infrastructure that are being outsourced, the top two include non-mission critical applications (76 percent) and storage (70 percent)
Contractual obligations (54 percent) and company culture (28 percent) are the two main reasons that prevent Singapore enterprises from outsourcing.
“Asia has always been an important market to Savvis, especially Singapore,” added Smith. “Singapore enterprises are in lead position for global cloud adoption and their willingness to improve and transform the way IT is managed has spurred Savvis to invest into the country[1].”