Singapore companies are found to be the leaders in IT outsourcing, according to a survey by research firm Vanson Bourne.
By 2021, three-quarters of respondents in Singapore stated that they will outsource most of their infrastructure while half have said they will move to the cloud.
The survey reached out to 480 IT decision makers in Singapore, Germany, France, United States and United Kingdom.
Even right now, Singapore companies are leading the way. Only 43% of them host their IT infrastructure in-house, less than the global average of 59%. Outsourcing is expected to bring significant cost savings in the long run.
However, Singapore firms are found to be purchasing far more capacity than they need. About 70% experience buyer’s remorse with regards to IT equipment, much higher than worldwide rate of 43%.
There are many concerns expressed over outsourcing. In-house IT personnel fear losing their jobs, leading to protests at any such attempt. Security and stability also remain top concerns for businesses.
Indeed, a survey by CA Technologies found that 95% of companies that moved to the cloud have experienced data loss or downtime, although that is mainly because these firms have inadequate security measures in place.
But that has not deterred more companies from embracing the cloud. In Singapore, IBM launched a cloud computing laboratory in May 2010 to help businesses, government and research institutions and institutes of higher learning to design, adopt and reap benefits of cloud technologies.
Dell followed suit in July 2011 by opening a new cloud computing center to assist enterprise customers.
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