Posts Tagged ‘Computer’

Steady Rise in IT Operational Spending Expected for 2015

November 20th, 2014

In 2015, most IT shops across industries can expect a boost for their IT operational budgets, and those gains will be made in additional staff, cloud computing, and enterprise apps including business intelligence, according to a new study released by Computer Economics, a research and advisory organization that provides metrics for IT management.Outsourcing6

The 2015 IT outlook is mostly positive, according to Computer Economics, which based the study, “IT Spending and Staffing Outlook for 2015,” on a survey of 128 IT organizations worldwide, including 68 IT organizations in North America. The annual study assesses IT spending plans, priorities for IT spending and investment, and plans for hiring, outsourcing, and use of contractors and part-time workers as well as pay raises for IT workers.

While the expected increase in IT operational spending may seem lackluster compared to historical trends, it is steadily rising, and should increase 3 percent at the median in the United States and Canada. This compares to a 2.7 percent in 2014.

“Our annual outlook survey indicates organizations are willing to invest in transformational technologies and are more concerned about improving service levels than reducing costs,” John Longwell, VP of research for Computer Economics, said in a prepared statement.

According to the study, organizations expect to increase their IT staff headcount—a trend that carries over from last year. In last year’s study, Computer Economics reported that nearly half of all IT organizations in North America planned to increase the size of the IT workforce, with 49 percent of IT organizations anticipated getting the green light to augment staff headcount in 2014.

This year, in the 2015 study, Computer Economics found that more than half of IT organizations will increase IT staff headcount. In addition, a growing number of survey respondents indicated that they will transition from the use of contractors to hiring more full-time, regular employees. Also, the typical IT worker will receive a 3 percent pay raise, the 2015 study found.

Despite the gains in IT staff, and continuing investments in cloud computing, mobility, enterprise applications, security, and business intelligence—from which organizations will be able to derive transformational value, according to Computer Economics—not everything was upbeat. The study found that IT capital budgets will remain flat, and that capital spending on data center and network infrastructure will remain weak. IT executives will need to grapple with finding resources to maintain existing infrastructure, and that will be an ongoing challenge for many years ahead, according to the firm.

More specific findings on the insurance industry are available in Computer Economics’ comprehensive study, “IT Spending and Staffing Benchmarks – 2014/2015,” a more in-depth study that provides composite statistics of IT spending and staffing data, a segmentation of the same statistics by organization size, and benchmarks for 23 sectors and subsectors. According to this report, insurance organizations are information-intensive businesses that use IT technology for nearly every aspect of their business. Most of the employees use computers in their daily work, and insurance companies spend more per user on IT than any other subsector in the study, according to Computer Economics.


IT Operational Spending to Grow Modestly

November 18th, 2014

IT operational spending in the U.S. and Canada will increase 3% at the median next year amid “improving and sustainable — if not stellar” economic growth, but capital budgets will remain flat, according to a survey by Computer Economics.Outsourcing41

1024px-BalticServers_data_centerThe IT research firm said in its IT Spending and Staff Outlook for 2015 that the growth rate in operational spending, while somewhat modest by historical standards, continues the gradual, steady improvement since 2011, and it will primarily benefit cloud computing providers and job seekers.

The study found that more than half of IT organizations will increase staff next year, with a shift from the use of contractors to the hiring of more full-time, regular employees.

“The outlook for 2015 is mostly positive,” the study concludes. “There are innovations in mobility, business intelligence, and cloud computing that are enabling businesses to derive transformational value from their IT investments.”

However, “at the same time, IT spending faces real constraints in the slow-growth environment, and IT executives will need to grapple with finding resources to maintain existing infrastructure while investing in transformational technology,” it added. “That will be an ongoing challenge for many years ahead.”

Computer Economics polled 68 organizations in North America about their spending plans for 2015; priorities for IT spending and investment; and plans for hiring, outsourcing and use of contractors and part-time workers.

As far as IT capital budgets, the survey predicts little or no growth at the median as organizations continue to invest in enterprise applications, security and business intelligence, but spending on data centers and network infrastructure remains weak.

The IT outlook is “not entirely bullish,” Computer Economics said, but the survey results suggest that business leaders recognize the value in IT. “Organizations are willing to invest in transformational technologies and are more concerned about improving service levels than reducing costs,” John Longwell, the firm’s vice president of research, said in a news release.


IT outsourcing frees up valuable resources, expert says

October 2nd, 2010

Businesses should be embracing IT outsourcing to free up resources, not merely to reduce costs, it has been claimed.

Writing for, Adam Hartung commented that the overall objective when delegating functions to an external support provider is to make the business perform better.

“What most of them need is more room to experiment, try new technologies, try new applications, try new solutions, seek out new customer market opportunities and find ways to grow the business,” he suggested.

Mr Hartung said outsourcers can help achieve these goals, also noting that they can help complete end-of-life projects cheaply and quickly.

Firms should also be wary about spending on legacy systems as they plan to outsource IT, he noted.

Anthony Hayes, head of IT supplier management at the Royal Mail, recently told Computer Weekly that it is inevitable more businesses will choose to embrace IT outsourcing in future.


Increased IT outsourcing ‘is inevitable’

September 23rd, 2010

An increase in IT outsourcing is inevitable over the next few years, it has been suggested.

In an article for Computer Weekly, Kathleen Hall noted many leading IT decision-makers believe businesses will continue to move computing functions over to support and managed services providers.

The journalist observed Anthony Hayes, head of IT supplier management at Royal Mail, thinks departments should keep their IT strategy in-house, while outsourcing their day-to-day operations.

Mr Hayes said both parties need to maintain accountability and explained the practice demands a different mindset and style of working.

He added: “The biggest difference is now we have a bunch of people assuring the delivery of the service, as opposed to delivering everything themselves.”

Chief information officer at Severn Trent Myron Hryck acknowledged there is currently a significant amount of IT outsourcing taking place in the computing world.

Ben Birmingham, managing consultant at Quantum Plus, recently claimed support and managed services is becoming increasingly popular among small and medium-sized enterprises.


Hacking is getting increasingly sophisticated, says Norton

September 23rd, 2010

Hackers have moved on from simple scams to sophisticated espionage campaigns, it has been claimed.

According to IT security software provider Norton, some of the world’s largest corporations and government entities are now targets.

Con Mallon, security expert at Norton, said that in order to protect their IT systems, businesses must ensure that all employees are knowledgeable of the risks that surround them online.

He said: “Cybercriminals have increasingly turned their attention towards enterprises due to the potential for monetary gain from compromised corporate information.”

“Attackers have been leveraging the abundance of personal information, openly available on social networking sites, to synthesise socially engineered attacks on key individuals within targeted companies.”

The comments may encourage more companies to seek external PC support services through an IT outsourcing provider.

But all companies, irrespective of their IT setup, have been urged to take as many defensive precautions as possible.

“Ensuring all passwords are strong and difficult to break, avoiding the sharing of key information and clicking on unknown links, are key principles that must be engrained into employees,


Worldwide techservices provides technology services and solutions for 8 of 10 top pc manufacturers

September 23rd, 2010

Worldwide TechServices is quickly becoming the leading technology services and solutions provider in the world, providing infrastructure, professional services and onsite support services to eight of the top ten global PC manufacturers.

According to a May 2010 Gartner forecast the number of global PC shipments is expected to continue to rise 22 percent this year, up from its March forecast of 20 percent, primarily driven by strong consumer demand and the replacement of aging computers.

As consumers continue to purchase new PCs or even upgrade their current PCs, the demand for technical service and support will continue to increase.

“Worldwide TechServices’ extensive capability to provide warranty support for eight of the ten major OEM hardware manufacturers along with their support footprint make them a excellent partner in pursuing global Infrastructure Technology Outsourcing opportunities, especially for a company like TCS, who remains OEM vendor neutral supporting all client environments,” said Mike Millette, Tata Consultancy Services’ North American Head for End User Computing Solutions and Services.

“It is imperative that PC manufacturers have an expertly trained, certified, flexible and organized technical team behind them,” stated Brendan P. Keegan, Worldwide TechServices president and CEO.

“Because Worldwide TechServices delivers top tier customer service and technical expertise, the company is trusted by eight out of ten of the leading PC manufacturers.

With technicians immediately available in more than 50 countries, Worldwide TechServices expertly serves some of the fastest growing companies in many client locations.”

Worldwide TechServices delivers its top tier customer service and technical expertise through its award winning field service management system, Worldwide Information Technology System (WWITS).

Worldwide Information Technology System provides real-time updates on global parts provisioning and positioning, workload balancing, service event status and escalations, technician positioning, and global reporting and analysis.

IT outsourcing to make gains in europe

September 8th, 2010

More European organizations are likely to increase their outsourcing initiatives, according to a new study by Gartner.That’s not a big surprise – back in December 2009, market research and advisory firm TPI said European companies were outspending their their North American counterparts by approximately $1.2 billion in average annual contract value (ACV) through the third quarter of 2009. You can read that blog here.

Anyway, Gartner says that 53 percent of organizations in Europe said they would outsource more in 2010, with 40 percent of organizations planning to boost spending on external IT services. These findings are based on an online survey of 206 organizations in Europe during in the first quarter of 2010.

So why this outsourcing growth spurt among European organizations? Gartner says smaller organizations are more likely to contribute to this growth – the study found that that almost 15 percent (with IT budgets of less than €1 million, or about $1.27 million) expressed interest in outsourcing, up from barely six percent in 2009.Equally telling is the finding that companies are looking to outsource in order to better control costs while supporting an ever-demanding clientele of end users that want greater access to resources and capabilities, flexibility and scalability. “This more complex set of business requirements is not easy to address,” Claudio Da Rold, VP and analyst at Gartner, said in a prepared statement.

The increase in outsourcing usage—and the increase in spending on external IT services—is tempered with the fact that there continues to be pressure on capital and It operating expenditures, according to Gartner. Even though 40 percent are boosting spending on external IT services, only 24 percent of the respondents said that they will increase the budget for providers. Almost a quarter of organizations expect that their IT services budget will continue to decrease this year.

I’m curious – for those of you out there either working with an outsourcing provider on an existing contract, or planning to use outsourcing services in the next six months… what are your usage and/or spending plans like? Are you upping the ante, holding firm, or cutting back?


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