Recession Continuing To Drive IT Outsourcing

Memset Says Most Companies Can Halve IT Infrastructure Costs By Outsourcing

Guildford, Surrey, United Kingdom - April 2009, Memset, the award-winning dedicated Web & IT hosting provider says the recession is continuing to drive IT outsourcing as businesses are having to tighten their belts and operate more efficiently at a time when corporate IT budgets are under close scrutiny.

By outsourcing IT functions to a managed hosting / utility computing provider like Amazon, Memset or Rackspace from whom you can rent anything from a virtual machine to a fully disaster-resilient server cluster, without up-front costs and with short-term contracts (a first step towards utility computing), businesses are able to avoid capital expenditure and save money.

Whilst outsourcing has become an established way for many organisations to manage their helpdesk or applications more efficiently, it can also help to take the server-management workload off the IT department so they can re-allocate their resources to dealing with other challenges, such as business process automation.

Outsourcing also offers opportunities to address green IT issues within the organisation. Whilst the big costs of hardware and electricity can minimised by green technology (e.g. virtualisation), outsourcing your servers / datacentre allows you to remove another variable cost from your books entirely. This will be especially important with the Carbon Reduction Commitment legislation coming into effect from 2010.

"Eventually you'll be able to shut down your datacentre operation, which was probably not core expertise anyway, but keep hold of the important bits of your IT team," says Kate Craig-Wood, MD of Memset.

Memset offers a range of outsourced IT management services that will make outsourcing more affordable for SME customers as well as large organisations. With Gartner recently publishing new research indicating that IT outsourcing prices will drop between 5-20 per cent in the next year, now is the time for all businesses to seriously consider outsourcing, which can halve IT infrastructure costs in many cases.

"Memset has experienced a 19% jump in gross revenues since the economic downturn began, and continues to grow," said Craig-Wood.

"As more and more businesses are starting to see IT resources as something they buy as a utility - just like they have for years, with electricity, water and telecom, most applications and IT infrastructure can be hosted outside an organisation better and cheaper than when run internally."

Craig-Wood concluded, "You would not have a power-generation department, so why have a datacentre when those resources are available on-demand more cheaply than you can do it yourself?"

For more information on how outsourcing to Memset can save money please see our IT hosting page.

Posted April 2009 by Kate Craig-Wood