Latest Research

Some of the UK‘s largest companies are seriously planning to explore the value of offshoring their data centre

Nearly two thirds (64 per cent) of some of the UK’s largest companies plan to offshore their data centres to other nations in the next five years, according to new research conducted by Vanson Bourne for independent IT consultancy, the DMW Group. However, 44 per cent of the organisations planning to offshore will snub locations such as South Africa and Eastern Europe in favour of India.

 

 

The UK data centre market is struggling to contend with the increased demand, lack of space availability and high costs required to house and manage data centres in the UK.  Since the cost of communication has plummeted, offshoring locations such as Eastern Europe and South Africa now offer low-cost and reliable alternatives for certain industries. Interviews with fifty IT managers and IT directors in companies with a turnover of not less than £50m across the retail, financial services, pharmaceuticals, manufacturing and energy sectors, analysed their data centre strategy and perceptions of offshoring. 

Nearly half (43 per cent) of organisations hadn’t already offshored through fear of the technical complexity of doing so. While over a third (36 per cent) of IT managers cited employment issues and resources as a key barrier.  Data security and regulatory issues were also major concerns.  However, if competitive pressures dictated it over a quarter (28 per cent) would consider offshoring in the short term.