IT Outsourcing Look Set to Rise, As Talent War Rages

Chief information officers (CIOs) in corporate companies look set to outsource more of their IT functions, as the war for talent rages on in the global technology services industry.

Lack of skill among existing employees, advancing technologies, attrition, and the resultant wage inflation, are all indicating a potential rise in outsourcing this year, according to Gartner.

In the meanwhile, the research firm has projected worldwide IT spending to reach US$4.45 trillion this year.

Spending on consulting and managed services alone will reach $1.3 trillion, an increase of 7.9 % from 2021.

“Through 2025, organizations will increase their reliance on external consultants, as the greater urgency and accelerated pace of change widen the gap between organizations’ digital business ambitions and their internal resources and capabilities,” the research firm added.

In the past couple of years, CIOs focused on short-term projects, such as building hybrid facilities to accommodate both in-office and remote workers, but they will likely invest in long-term projects in the days ahead.

“Gartner expects the vast majority of large organizations to use external consultants to develop their cloud strategy over the next few years.”