by Stephanie Overby

Outsourcing Continues to Rise, “State of the CIO” Data Show

News
Nov 07, 20071 min
IT LeadershipOutsourcing

Nine of out 10 corporate heads of IT outsource some functions, up from 85 percent a year ago, yet very few outsource the majority of their IT operations.

CIOs are doing more outsourcing, according to research recently concluded for CIO’s 2008 “State of the CIO” issue.

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The numbers show that 46 percent of IT leaders say that they outsource or otherwise contract out between 1 and 10 percent of the IT function, up from 41 percent last year. The number of IT executives who outsource nothing decreased to 9 percent this year from 15 percent last year.

IT Outsourcing on the Rise

CIOs are doing more outsourcing this year.

What percent of your total IT labor is provided by outsourcers or contract service providers?
Percent of IT labor outsourced 2008 2007
0 9% 15%
1 to 10 46% 41%
11 to 20 18% 18%
21 to 30 10% 11%
31 to 40 6% 4%
41 to 50 2% 3%
51 to 60 2% 4%
61 to 70 2 1%
71 to 80 2% 1%
81 to 90 1% 1%
91 to 100 1% 1%
Don’t Know 1% 0%

Source: 2008 State of the CIO survey of 558 heads of IT. The full results of the State of the CIO will be published Dec. 15.