Dec, 2001 : SMBs No Strangers to Outsourcing, Yankee Group Finds
📅 - Research firm The Yankee Group (yankeegroup.com) released information this week indicating that more than half of small to medium sized businesses (SMB) use outsourcing for their IT needs to some degree. The information comes from the Yankee Group SMB Networking and Infrastructure Study of October 2001.
The study found that while over 51% of SMBs rely on a third party for IT needs, under 14% do so exclusively. The rest rely on a mix of in-house IT staffing and outsourced consulting. Also, the study found that most SMBs have an over-tasked IT staff, assuming they have one at all.
The Yankee Group also found that most smaller businesses look at outsourcing with a combination of fear and skepticism. 55% of SMBs believed that they could do a better job in-house, while 72% of the respondents stated that outsourcers would have to understand the client's business in order to provide acceptable service.
The study recommended that vendors devise solutions that work with SMBs' pre-existing IT infrastructure, rather than trying to change the client's IT model. Additionally, the study suggested that most SMBs consider price to be a qualifier, rather than a core selling point, and that word of mouth, established brand, and the viability of the outsourcer was more important to the decision making process.
The study found that while over 51% of SMBs rely on a third party for IT needs, under 14% do so exclusively. The rest rely on a mix of in-house IT staffing and outsourced consulting. Also, the study found that most SMBs have an over-tasked IT staff, assuming they have one at all.
The Yankee Group also found that most smaller businesses look at outsourcing with a combination of fear and skepticism. 55% of SMBs believed that they could do a better job in-house, while 72% of the respondents stated that outsourcers would have to understand the client's business in order to provide acceptable service.
The study recommended that vendors devise solutions that work with SMBs' pre-existing IT infrastructure, rather than trying to change the client's IT model. Additionally, the study suggested that most SMBs consider price to be a qualifier, rather than a core selling point, and that word of mouth, established brand, and the viability of the outsourcer was more important to the decision making process.
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