Research by Matrix Communications shows enterprises believe they are using 20% too many IT suppliers
Matrix Communications, the UK Virtual Network Operator (VNO) and wholly owned subsidiary of the Calyx Group plc, shows that the industry trend among large UK organisations to aggressively streamline their business operations for leaner growth will hit IT suppliers hard. The research, taken from a survey conducted by Matrix Communications among senior IT managers, found that 53% wanted to reduce their number of contracted IT suppliers and solutions providers. Across all respondents, the average number of IT suppliers used presently is 5.54, while the desired number was given as 4.32 – a reduction of over 22%.
Respondents offered a wide range of differing reasons for why they see fit to rationalise their IT supplier arrangements. A total of 35% felt it would realise cost savings or drastically reduce management overheads, while another 24% agreed that a fewer number of suppliers would actually invest far more in meeting their business needs and objectives.
“This marks the death knell for any complacency remaining in the UK IT sector,” said Andy Mills, Sales Director of Matrix Communications. “The technology services industry may well be booming, but only for those providers offering genuine value and innovation. Large enterprises are rightly scrutinising all of their costs and processes, but this evidence demonstrates that they are putting IT under the spotlight and believing there is no small measure of waste to throw away.”
More facts and figures from the research:
•Only 12% of respondents used between one and two IT suppliers. 52% used seven or more •Of the respondents using a large number of IT suppliers, only 6% agreed they did so in order to “keep them all on their toes”
•A total of 49 respondents completed the survey in Autumn 2006; all of whom are senior IT decision makers at large UK private and public sector organisations