Why do CIOs choose outsourcing?

According to the 2018 Harvey Nash/KPMG CIO Survey, the rising demand for ‘security and resilience’ talent is one of the main reasons for outsourcing jobs. But there are some other crucial reasons as well

In their newest IT leadership survey, Harvey Nash and KPMG asked nearly 4,000 CIOs and technology leaders across 84 countries about their attitudes toward various aspects of their careers, including budget, technology and workforce priorities. The largest IT leadership survey in the world, analyzing responses from organizations with a combined annual cyber security spend of up to $46 billion, found that almost a quarter (23%) more respondents than in 2017 are prioritizing improvements in cyber security as cybercrime threats reach an all-time high.

77% of IT leaders say they are “most concerned” about the threat posed by organized cybercrime, up from 71% last year. Only one fifth (22%) say they are well prepared for a cyber-attack. The drive toward protecting data has caused a huge demand for “security and resilience” skills, which recorded the biggest jump in skills shortages, increasing 25% year-on-year. Where there is a lack of in-house skills, IT leaders look for them outside of the company. Here are some other reasons, why the surveyed CIOs chose outsourcing:



Shortage of skills is becoming a huge problem for IT leaders. More than a third of companies (35%) report they can’t hire and develop the people with digital skills that they need. For example, for the fourth year in a row, big data and analytics is the number one skill in short supply (46%). Two thirds of CIOs (65%) say skills shortages are preventing them from keeping up with the pace of change.

Euvic’s customers also pay attention primarily to the aspect of competence that is not available in-house and to high quality at lower costs, which is possible in case of nearshoring. Here is how Euvic decreased its client non-operational risk for half of the price [see the case study of the Swedbank].

How does your company deal with the problem of skills shortages?