More than a quarter of companies outsourced their information technology needs in 2011, according to government data released today.The Information and Communication Technology (ICT) Report 2011 shows that output and employment fell in the group of industries which includes telephone and internet service providers, as well as computer, audio and video equipment companies.On the bright side, much of the outsourced work went to local companies and this helped to boost the number of IT professionals working on the Island to 328, compared to 313 in 2010.The report states: “The restructuring and the re-domicile of businesses contributed to the loss of ICT-related jobs. In 2011, approximately 29 percent of all companies outsourced their ICT needs to other companies, 75 percent of which were local companies.“This helped to slow the loss of local computing professional jobs as 15 more persons were employed in this field of work compared to 2010.”Many companies have been sought to cut their IT costs through the use of cloud computing, rather than maintaining their own IT networks. Local companies including Ignition, QuoVadis, Logic Communications and Cirrus Dynamics offer services in this field.Some organisations have shifted their IT departments to cheaper jurisdictions, especially Canada.Employment fell in the ICT sector for a third successive year, dipping to 914 from 948 in 2010. In 2008, 1,008 people were employed in the industry.ICT’s contribution to gross domestic product fell by $14 million, or 5.7 percent, last year to $239 million.However, spending on ICT capital good rose sharply, from $114 million to $131 million, driven by a 37 percent increase in business investment on computer software. Spending by financial institutions, transport and telecoms companies and international business, accounted for more than half of the expenditure.The report found that about 90 percent of service-related companies and 80 percent of goods-related companies in Bermuda use computers. Just over half of all companies had a web presence.Just over a quarter of companies placed orders via the internet, while just seven percent received online orders.Within the ICT sector, the ICT services sub-industry recorded the largest decline with a $13 million fall in value added last year.Businesses offering telephone and internet connections saw spikes in their operational costs that drove down their economic contribution. Radio and television programme providers also suffered a dip in activity.The value added of trade industries and content and media industries declined by three percent and two percent, respectively.See the full report, attached below.