In-house or third party? Enterprises shifting IT strategy with mobile at the heart of change

The majority of enterprises continue to rely on third-party vendors for IT services – but the plan is to take IT in-house, according to a new survey from B2B research firm Clutch.

The study, which polled 582 IT decision makers, found that of enterprises who outsource their IT needs, four in five are trending towards hiring domestic providers as opposed to offshore in 2017. Half of all enterprises surveyed said they planned to increase the amount of IT services handled in-house this year.

Whether a company goes for in-house or outsource depends on the priority of the IT need, according to the research. “If you think of types of more specialised work like mobility, I think organisations are going to try to do it themselves and have that control,” said Mike Hughes, director of product marketing at Outsystems.

Despite this, only 22% of respondents said they were ‘unlikely’ to use an offshore IT vendor in the future. Not surprisingly, cost and value was the primary benefit of offshore resources, while it was also cited most frequently by respondents as the biggest challenge of partnering with a domestic provider.

The primary IT services enterprises hire third party providers for are around data security, cited by 47% of respondents, integrating cloud technologies (43%) and mobile support (40%). Clutch argues that these three trends – the latter a natural fit – all directly relate to enterprise mobility concerns.

One of the primary reasons for this trend is through the growing technical capabilities of the employee base, as well as the consumerisation of IT.

“We’re entering into a new phase of workers who have a reasonable amount of technical savviness. That’s the first thing that’s causing trends that more work will be done in-house,” said Richard Rabins, CEO of app development provider Alpha Software. “At the IT level, [in-house personnel] don’t have to be superstar developers – you can give them one of these low code products and make them productive.”

This resonates with a recent Forrester report on low code application development, albeit from a slightly different perspective, which argued that “while developers might choose to sweat every pixel in a prominent B2C app, that level of control might not be important for the half-dozen employee apps in the backlog for finance, sales, field service and operations.”

You can read the full Clutch report here.

 

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