European businesses are wasting 115 million hours every year dealing with the admin relating to internal IT systems.
Research conducted by analyst Cumulus Research Partners found that a typical large company wastes up to 1,500 man hours every year because firms underestimate the amount of time, equipment, services management and planning needed to keep their IT infrastructure working. It calculates that this means the UK wastes 31m man hours a year.
Scott Smith, managing partner at Cumulus, said IT managers still failed to realise the impact on the rest of the business of systems going down.
"What's often not taken into account is how much non-IT time is taken up by this. IT decisions aren't made in a vacuum. If you add it all up it becomes quite substantial," he said.
Stephen Scott, managing director of PSINet UK, which sponsored the research, said: "Five or six years ago outsourced IT wasn't so robust, but now it's unaffordable to in-source.
"It boils down to what is your core business and the perceived exposure of handing that over to a third party. There's a level of balance required."
But Richard Jarvis, European chief information officer for media company Diversified Agency Services, said emotional factors continued to play a major role in any decision about outsourcing.
"When you get into the small and medium enterprise market, emotions are still very strong and senior management is still nervous about what they are prepared to let go of."
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