Outsourcing grows globally as leaders grapple with talent, cost constraints

C-suite leaders are outsourcing IT services to harness external expertise amidst talent and budget shortfalls, but overreliance on third-party guidance poses strategy risks.

C-suite leaders are determined to bring their organisation’s IT vision to life, but many worry talent and cost constraints are taking that strategy out of their control, according to a new survey.

The survey, C-suite Imperatives: Accelerating Innovation in a Shifting Landscape, by Rimini Street, a global software company, found that 46% of chief information officers and CEOs said increased automation and artificial intelligence (AI) adoption is the top imperative in their five-year plans.

Other short-term IT goals amongst C-suite executives include cybersecurity and risk management (44%), compliance and regulatory requirements (41%), cost optimisation and reduction (39%), strengthening business continuity and disaster recovery (36%), and talent and skills development (35%).

While those goals paint “an optimistic future of strategic improvements and resilience”, nearly all C-suite leaders (98%) recognise that a talent shortage is affecting the viability of their IT vision, the survey said, with 68% labelling it as having a significant impact, as AI’s potential continues to pique interest in the boardroom.

The report surveyed more than 4,000 leaders globally in 2025.

Budget constraints, rising costs, and volatile market conditions have some executives at a crossroads, the survey said. Over a third (36%) of C-suite leaders view high maintenance and operational costs as innovation funding roadblocks.

In response to these constraints, leaders are looking to outsource talent to achieve their company’s IT vision. The executives “see value in outsourcing IT services to harness external expertise and enable internal talent to focus on high-priority initiatives”, the survey said. “Nearly all survey respondents are outsourcing now and plan to do so down the road, with cybersecurity and infrastructure management being among the top three services for current and future needs.”

However, for some organisations, talent shortages and pressure to follow vendor-dictated IT road maps pose significant challenges, the survey found. Ensuring that they have the infrastructure and resources to carry out IT strategy will require the C-suite to regain control of its vision, the survey said.

Refining priorities

Leaders surveyed are ambitious about their plans for the future, but failure to refine and simplify expectations could hinder growth for their companies.

To make sure their IT strategy is driven by plans focused on return-on-investment value, more collaboration in the C-suite is needed, the survey said.

“With multiple competing priorities at play, C-suite executives need to engage with their business counterparts to determine which initiatives will have the greatest impact — both short term and long term — and therefore deserve the highest focus,” the survey asserted.

— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.

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