Narayan AmmachchiCIOs across Canada are becoming increasingly less satisfied with IT infrastructure outsourcing providers, according to IT World Canada’s fifth annual Canadian CIO Census.
The census does not foresee a decline in outsourcing, but it warns that businesses would less likely rush into outsourcing their IT infrastructure in the next two years.
In the survey, about 28% of respondents said their outsourcing experience had “fallen below” expectations, with only 10% saying that outsourcing providers had exceeded their expectations.
The findings do not necessarily mean that Canadian firms dislike outsourcing, as they still expect external IT firms to help them increase operational efficiency, reduce costs, and improve employee productivity.
Their increasing concern over data could be the reason for the decreased interest in outsourcing. Some businesses believe that loss of data would undermine their competence and even push them out of the market.
“It’s better to have control over your own applications,” said Kevin Newcombe, director of IT and Iovate Health Sciences International Inc. “If we want to make a change, we make it. We don’t have other people controlling our software.”
Meanwhile, according to the report, CIOs are finding their role gaining traction more than ever before. “More and more CIOs are being looked to for their leadership, which with their technological savvy make them prized resources in companies in the midst of digital transformation,” the report noted.
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