Organizations outsource IT infrastructure for a variety of reasons, from the desire for greater operational agility to the need for new specialized skills and cost savings. However, market trends are changing. According to a report from GSA UK, some outsourcing trends will become less significant in the future.
It is assumed that such changes will become noticeable in 2020. Companies that want to keep up with the times need to prepare for the next wave of outsourcing. In the coming years, partnerships between third-party developers or teams of specialists and enterprises will be just as important as the focus of IT outsourcing companies on innovation.
The state of IT outsourcing
The list of IT functions that are most often outsourced to third parties will help you assess the current state of the IT outsourcing industry. He was prepared in 2017 and reflects current trends in this area.
The features are listed in descending order of popularity:
- web development and ,
- software maintenance,
- data centers,
- IT Infrastructure,
- customer support services,
- network maintenance,
- integration services,
- functions of the personnel department.
This list will change in the near future. The National Outsourcing Association of Great Britain has identified the directions for the development of the outsourcing industry after 2020 as part of a research campaign.
According to research, the main trends in this area will be the following:
- Value before price. Outsourcing relationships will no longer focus on price cuts. More attention will be given to the added value they bring.
- Multiple Suppliers. Customers will choose several companies for one project in order to assemble the most suitable team.
- New areas of outsourcing. Customers will more often choose IT developers from Central and Eastern Europe, such as Brainhub.
- Emergence of new business models. Outsourcing partners will share responsibility with their customers so contracts can become performance-based.
- Automation. IT tasks can be performed by bots, artificial intelligence systems and robots.
- Cloud platforms. In the field of outsourcing, a wave of data storage and security projects is expected.
Key IT outsourcing trends beyond 2020
New motivation
As part of the research, outsourcing companies and their customers were asked about the reasons for outsourcing IT functions. At the same time, 35% of respondents named the most important aspect cost savings, and 23% increase customer service quality.
In addition, it can be argued that the field of IT outsourcing will grow along with the number of people seeking to outsource more and more tasks. While there are various reasons for outsourcing, most organizations agree that improved customer experience and the potential to identify new opportunities appeal more than cost savings.
Contracts.
According to GSA UK, almost 90% of respondents strongly believe that both outsourcing companies and their customers after 2020 will switch to , results and value oriented.
In addition, 69% of respondents predict that outsourcing companies will work as system integrators. In doing so, they will share more risk with their customers. Only 31% of respondents expect outsourcing companies to take all the risks.
Focus on service delivery
More and more business representatives believe that service provision should be one of the most important parts of contracts. Notice periods and contracts will also be reduced.
Contract models currently being developed and modified by customers will be based on results. Such models will evaluate for both parties to the contract the value and opportunities for the development of relations in the future, taking into account the results obtained. Thus, cooperation IT outsourcing will reach an unprecedented level as partners and customers realize that risk sharing brings them more benefits in the long run.
Development of cooperation and competition
As contracts become performance-based in 2020 and market players become more open to sharing risk with each other, outsourcing companies will become major service integrators.
Given the outsourcing trends described, you may be wondering: To what extent will I share the risks? Where is the appropriate limit? How to separate them? And what impact will this have on the reputation of our company and our partner?
The best approach for both parties in this situation is cooperation and assessment of different opinions. Nobody wants to take risks. Therefore, you should become more open to dialogue, but at the same time try to assess the risk yourself - perhaps there is nothing to worry about.
Such situations in the outsourcing market can force competing companies to enter the fight for the largest deals and start offering competitive solutions. In turn, this can lead to the disappearance of the best possible supplier designs. On the other hand, some customers will be able to take advantage of this situation.
Main factors of transformation
Today's customers looking for companies to outsource IT functions are in constant motion and undergo many changes. They expect high quality solutions (and they may still be concerned about turnaround times). Suppliers must consider the needs of their potential partners, as well as avoid the commonplace these days disappointing results.
Customer dissatisfaction with outsourcing deals is on the rise. They believe that many vendors lack flexibility, are afraid of innovation, and do not keep up with cutting-edge technology. Outsourcing companies need to recognize these sentiments and focus on improving customer orientation. This will help you stay competitive, win big contracts and develop relationships with strong partners.
Conclusions
Today's IT function outsourcing providers need to understand the changing market trends described in order to understand the needs of today's customers. Leading partners will appreciate the customer-centric approach, transparency and trust.
In addition, adopting the latest technologies and protecting data on behalf of the customer will soon be of great importance. Courage in the issue of risk sharing can be the key to success and fruitful cooperation.
Implementing new strategies and following major trends in IT function outsourcing could be a great starting point for many market leaders in the next decade.
Source: habr.com