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   May 2011 Share this newsletter: Facebook LinkedIn Twitter 
 
 


FEATURE ARTICLE

RIM Services - The Next Frontier In Offshoring

With over a third of the private sector now sending their applications services to offshore locations, the question for some time has been: can infrastructure services follow the same route? Until recently, the answer was a resounding no.

Infrastructure offshoring has consistently lagged, with market penetration hovering at around 5% for a number of years. With infrastructure opex typically representing around 40% of total IT opex, this reticence has ruled out opportunities to take advantage of offshore savings for a large proportion of the organisation's IT spend. But this appears about to change. During the last year we have seen market penetration for infrastructure offshoring jump to around 12%, largely on the back of growing interest in 'remote infrastructure management' or RIM services.

RIM refers to the separation of 'logical' IT infrastructure management from the physical location of the data centre and IT systems, and is being fuelled by the development of new technologies and services that are characterised by remote-delivery, standardisation, automation and virtualisation.

This separation removes a key historical inhibitor to offshoring, namely the need to physically move the entire data centre offshore. Under a RIM service, the service provider supports data centre activities such as application monitoring and server, storage and network management from an offshore management centre, while the data centre and assets remaining in Australia. Importantly, this will allow organisations to leverage large low cost resource pools, and at the same time retain control of sensitive data and assets, including ownership of the data centre.

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Highlights from the 2010 ITNewcom IT Market Study (ANZ)

  1. IT Spend up 6% in FY10/11.
  2. Cloud & Social Computing Adoption is increasing.
  3. There is a clear intention to outsource more.
  4. The public sector showed a little more interest in offshoring compared to last year.

Click here to download full study

  

 
What's on @ITNewcom

  1. ITNewcom 7th Annual IT Market Study: Interviews April-May 2011. If your IT Spend is greater than A$20M and you would like to participate, please contact us.

  2. We are in the 2010 BRW Fast 100 List again!

    brwfast100 2010.jpg

  3. We are expanding in Australia: We opened our  Perth office to further meet the needs of our clients in Australia. For more information, please contact us.


  4. "ICT Procurement: What makes it special or different?” A CIPSA presentation in Dame Pattie Menzies House, North Building, 16 Challis Street Dickson on 22 June 5:30-6:30pm followed by a panel discussion.  Michael Cuddihy, one of our Senior Advisors is one of the panelists.

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