60% Of SMEs Are Outsourcing IT, Study Shows

According to Node4, one in ten SMEs are embracing cloud-based IT infrastructure

17.04.2014

Steven Beahan, Partner | +44 (0)114 294 7868

Around 60 per cent of small and medium enterprises (SMEs) have outsourced part of their IT infrastructure.
 
This is according to a new study conducted by data centre specialist Node4, which confirmed that more businesses are embracing the cloud computing revolution.

The report revealed that one in ten SMEs have already deployed a full cloud-based IT infrastructure and Node4 business development director Paul Bryce believes companies are increasingly confident when it comes to utilising the latest technology.

He stated that numerous studies have suggested small organisations are being left behind by their larger counterparts because they are unable or unwilling to deploy new systems, but this latest research refutes such claims.

"We firmly believe there is much greater recognition of the value that IT can deliver to businesses amongst SMEs today - and the apprehension that surrounded outsourcing has largely dissipated," Mr Bryce commented.

Businesses of all sizes were sceptical of cloud computing when it first emerged, as the thought of trusting a third party service provider to manage part of their IT infrastructure was a scary one.

Companies are particularly concerned about the data security implications of adopting cloud solutions. With sensitive information being stored off site, IT departments are worried that hackers will find it easier to intercept valuable data.

The Information Commissioner's Office has also been handing out substantial fines to businesses and public sector bodies that have failed to comply with the Data Protection Act 1998, so it is no surprise that some SMEs are still apprehensive about migrating to the cloud.

However, Mr Bryce insisted that adopting a more flexible IT infrastructure is crucial if enterprises are to progress and more entrepreneurs are now taking action.

"Many businesses are worried about this transition but they realise that if they don't keep pace, they will fall behind and miss the opportunity to capitalise on the renewed economic growth," he remarked.

Expert Opinion
While it may not have necessarily been the case in the past, small businesses now recognise in the 21st Century how they can benefit greatly and compete with larger organisations by having the right IT infrastructure in place and access to the latest technologies.

"This research reflects such trends and shows that SMEs now that the right operational set-up is key to thriving and achieving ambitions. However, the importance of security does of course come into play in this area, particularly when it comes to the storage and protection of important customer and client data.

"We would urge small companies to ensure they always think about the implications that IT infrastructures may have on such issues and take steps to ensure that compliance with key data regulations is a priority. Central to this will be speaking to legal advisers on the matter and ensuring all fundamental responsibilities are met."
Steven Beahan, Partner