WHAT IS THE AVERAGE COST OF OUTSOURCING IT PROJECTS TO VENDORS?

WHAT IS THE AVERAGE COST OF OUTSOURCING IT PROJECTS TO VENDORS?

IT Vendor Benchmarks

Western Europe Vendor Rates

The average cost of outsourcing IT projects to vendors in Western Europe is $68-$99 per hour. Major IT vendors in the Western Europe space that were used to determine the industry vendor rate benchmarks include the following: Kao Data (Harlow Operations Ltd) ; EcoDataCenter; Infinity SDC ; SAP; Verne Global ; T-Systems (Deutsche Telekom) ; CyrusOne (Zenium) ; ST Telemedia Global Data Centres (STT GDC) ; Iliad Data Center ; Hydro66 ; Global Switch ; NTT Communications ; Alibaba Group ; Digital Reality; and Equinix. Details of our findings have been provided below.

Outsourcing IT

  • The average cost of outsourcing IT projects to vendors on a broad scale is $68-$99 per hour.
  • Services in Austria and Belgium are almost double, averaging between $100-$140.
  • Services, in general, can range anywhere from $37-$300 per hour.

Eastern Europe Breakdown By Specialty

Central Europe Breakdown By Specialty

Vendor Trends

  • The leading vendors in Western Europe are currently using OCP and open designs for flexible infrastructure management which is leading growth in the market. In addition, these vendors are “offering infrastructure to enterprise customers pre-installed with their rack products to attract new consumers in Western Europe.”
  • Vendors are driven to innovate their products in the portfolio space due to the establishment of stringent data regulations.

Research Strategy

In order to determine the Vendor rate for Western Europe, we began research by scouring research databases, media publications, news publications, and press releases. The goal was to identify the vendor rate for IT project roles precompiled or metrics that could be used to calculate them either globally or regionally. Unfortunately, this search provided no hard data that was specific to individual projects. We were, however, able to find the average cost for outsourcing IT projects in general as well as vendor statistics, key players, and regional data for IT projects. We then analyzed each of the identified players identified in our initial search. The goal was to compile individual vendor rates for IT projects from key players as a proxy for the industry benchmark. Through this search, we were unable to find any further breakdown of price beyond the initial base average. Finally, we expanded our search to include all of Europe. Through this search, we were able to find a breakdown of pricing by specialty for Eastern and Central Europe.

Southeast Asia Vendor Rates

The average cost of outsourcing IT projects to vendors in Western Europe is $68-$99 per hour. Major IT vendors in the Western Europe space that were used to determine the industry vendor rate benchmarks include the following: AIMS Data Centre ; Biznet Data Center ; CMC Telecom ; Colt DCS ; DCI Indonesia ; Digital Realty ; Equinix ; Global Switch ; GRAHA TEKNOLOGI NUSANTARA (GTN) ; Indosat Ooredoo (Lintasarta) ; Internet Thailand Public Company Limited (INET) ; Keppel DC ; Kepstar Data Center Management ; NTT Communications ; Philippine Long-Distance Telephone ALPHA (PLDT ALPHA) ; PT Telekomunikasi Indonesia ; Singtel ; ST Telemedia Global Data Centres (STT GDC) ; TCC Technology True Internet Data Center (True IDC) ; VADS Berhad ; VNTT; and XL Axiata. Details of our findings have been provided below.

Outsourcing IT

Breakdown By Specialist

Vendor Trends

  • REIT investments are expected to drive growth in vendor infrastructure and incentives from governments in Southeast Asia in the future.

Western Europe IT Teams

Due to the lack of uniformity within the IT industry in terms of teams based on terminology, data metrics, and company size, regional data regarding team benchmarks are not publicly available, however, the global median team size for IT teams is 4 team members with 31% of teams having an average of 5 or more. In Western Europe, 66% of large companies outsource at least some of their IT projects. Details of global benchmarks, Western European findings, and industry statistics in Western Europe have been provided below.

Benchmarks

Helpful Findings

Research Strategy

In order to determine the number, project managers, off-shore, and outsourced benchmarks in the IT industry for Western Europe, we began our search by scouring industry reports, research databases, news publications, media publications, and company data. The goal was to find the benchmarks precompiled or find metrics that could be used to calculate them. Unfortunately, this search only provided global metrics, industry statistics in Western Europe, and team organization. We then searched for data specific to Western Europe or Europe as a whole that could be used to further triangulate the benchmarks down to the specific geography. Unfortunately, we were unable to find any metrics through an exhaustive resource search. Through this search, however, we found that, in general, the way that IT teams are organized, defined, and ran differ so much between different industries and based on company size that compiling this kind of data on any smaller scale is extremely difficult. This is mostly due to the fact that teams do not use the same terminologies across any region, industry, or company size which makes tracking specific team metrics unreliable. Due to these findings, we determined that calculating the percentage of project managers per team and region-specific data was not possible. We have provided all publicly available data found regarding Western European IT teams above.

Southeast Asia IT Teams

Due to the lack of uniformity within the IT industry in terms of teams based on terminology, data metrics, and company size, regional data regarding team benchmarks are not publicly available, however, the global median team size for IT teams is 4 team members with 31% of teams having an average of 5 or more. Southeast Asia is one of the leading regions for foreign countries to outsource their IT projects to. Details of our findings have been provided below.

Benchmarks

  • Number: The global median IT team size is 4 with 31% of teams having an average of 5 or more.
  • 72% of team members interact with a manager during a project globally.
  • Off-shore Team: 31% (global)
  • Outsourced: 31% (global)

Helpful Findings

  • In 2018, companies invested $11 billion collectively into tech efforts in Southeast Asia with Indonesia accounting for 70% of that investment.
  • Internet penetration in the region has driven companies to shift focus to data center services such as managed services, colocation, and hybrid infrastructure services.
  • Digital services will contribute to 40% of the GDP in the Philipines by 2021.
  • The region has developed a focus on specialized IT teams in order to maximize current growth opportunities.
  • 40% of the top 100 outsourcing companies are located in Southeast Asia.
  • India has 3.1 million graduates that join the workforce annually.
  • Southeast Asia is one of the worlds leading regions for other countries to outsource their IT projects to. The leading countries for outsourcing IT projects are India, Vietnam, Philippines, Thailand, and China.

Research Strategy

In order to determine the number, project managers, off-shore, and outsourced benchmarks in the IT industry for Southeast Asia, we began our search by scouring industry reports, research databases, news publications, media publications, and company data. The goal was to find the benchmarks precompiled or find metrics that could be used to calculate them. Unfortunately, this search only provided global metrics, industry statistics in Southeast Asia, and details of the best countries to outsource to. We then searched for data specific to Southeast Asia as a whole that could be used to further triangulate the benchmarks down to the specific geography. Unfortunately, we were unable to find any metrics through an exhaustive resource search. Through this search, however, we found that, in general, the way that IT teams are organized, defined, and ran differ so much between different industries and based on company size that compiling this kind of data on any smaller scale is extremely difficult. This is mostly due to the fact that teams do not use the same terminologies across any region, industry, or company size which makes tracking specific team metrics unreliable. Due to these findings, we determined that calculating the percentage of project managers per team and region-specific data was not possible. We have provided all publicly available data found regarding Southeast Asia IT teams above.

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