One third of the organizations export more IT due to the lack of talent

One third of organizations in the UK (32%) plan to export more of their IT over the next two years – and for the first time, their biggest reason is not to cut costs.

According to a large study, the main reasons for outsourcing were to enable organizations to focus on their core business and gain access to talent, which notes that the first case of cost reduction is not the main motivation.

A survey of 270 of the UK’s largest companies by Whitelane Research and PA Consulting looked at around 1,000 cloud connections and IT outsourcing.

A total of 57% of respondents said they use outsourcing to focus on their core business, while 56% said it was to gain access to skills and resources.

Of these surveyed organizations, 50% plan to outsource at their current rate over the next two years, and 18% plan to outsource.

Manish Handelval, an IT transformation expert at PA Consulting, said the pandemic years have accelerated the pace of digital transformation in various sectors.

“The outsourcing industry is using the years of the pandemic as an opportunity to transform its operational model and prove to be stronger. “The war for talent has reached unprecedented levels and will only intensify in the short term, but the industry has a unique opportunity to stimulate the global transformation of the workforce,” Khandelva said.

“As the global economy enters a potentially turbulent period, the winners will be those who are able to create meaningfully with customers, help them reduce time to market and contribute to both the top line and the end line. .

The survey found that managing transition and change is one of their weakest skills among respondent organizations, with 29% saying significant improvements are needed. He found that internal opportunities were the main challenge for providing complex transitions for 62% of respondents.

The cloud is also an increasingly important destination for many IT operations in large organizations. According to the survey, 52% predict that half or more of their portfolio of applications will be in the cloud in two years.