From left to right: TC Seow, Editor of CIO Asia; Reuben Wee, CTO of Independent Data Services (Holdings) Pte Ltd; Chris Sandoval, Chief Evangelist - Managed Services, NTT Communications Corporation; Lawrence Ting, Regional Head of Datacentres and DR/BCP Manager, Global Technology Services, Asia Pacific, Societe Generale Corporate and Investment Banking (Singapore); and Theodoric Chan, Vice President Global Network Transformation Taskforce, Network Services, NTT Communications Corporation
More than a hundred ICT professionals in Singapore gathered at the Grand Hyatt Hotel on February 12 for the inaugural Technology Outsourcing Forum 2015. Organised by CIO Asia and supported by NTT Communications, this event aimed to let attendees learn more about the trends, the how's, what's and why's of IT outsourcing from industry experts.
Takeshi Kazami, President and CEO of NTT Singapore, was the first to address the audience. In his welcome speech, Kazami provided a quick overview of NTT's business, vision and services at the global as well as regional level.
State of outsourcing in Singapore
TC Seow, editor of CIO Asia, kickstarted the event proper with his presentation on the state of outsourcing in Singapore. Besides touching on general ICT trends and current top concerns of CEOs, Seow also shared the findings of a research study conducted by CIO Asia on behalf of NTT Communications Corporation.
Titled 'Technology Outsourcing Trends in Singapore 2015', the study polled over 170 respondents from companies across a spectrum of industries. The report also highlighted the trends, challenges and drivers behind the current outsourcing landscape in Singapore.
According to the survey, more than 77 percent affirmed ICT outsourcing as a general practice in their companies. Although that figure showed outsourcing to be favourable, ICT spending priorities remain focused on essentials such as hardware and infrastructure upgrades, as well as network technology.
In terms of which business functions, most respondents were open to outsourcing in their organisations, with 66.5 percent citing Information Technology as the main business function outsourced. However, very few people seem to favour outsourcing Human Resources (5.1 percent) and Finance (6 percent). This was understandable, according to Seow, as these two business functions involved important, sensitive information that most businesses would not like to divulge; so they tended to see it as a risk in the hands of outsiders.
When asked about their key concerns, cost was still a strong argument for outsourcing as reflected by the lowly ranked concerns around budget constraints (7.9 percent). However, data sovereignty was a bigger issue, at 34.7 percent. The second big issue was industry regulation (22.8 percent), as data stored in the cloud was often subjected to not just local jurisdiction but also international laws.
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