The most recent IT Outsourcing Market: Growth, Trends, and Forecasts (2020 – 2025) research recently came out, conducted by Research and Markets. Even with the uncertainty of the Covid-19 pandemic has brought for businesses, Research and Markets predict that IT outsourcing industry will grow by 4.5% between 2020-2025.
In this article, we will explore why this is. Also, we will discuss the latest trends in the industry and why it is crucial to keep your IT up-to-date to stay competitive.
The Growing IT Industry
Research and Markets predict that the global IT outsourcing market will grow from USD 333.7 billion in 2019, and reach USD 397.6 billion by 2025. Indeed, the global market has seen a rise in IT outsourcing contracts, which has boosted the industry. The reason for this is that organisations have become dependent on the success of creative applications and extensions that only IT can provide. In other words, the rise in digital transformation and IT has given organisations the competitive edge.
The Changing Model of IT Outsourcing
IT outsourcing is no longer a simple cost reduction strategy. With the increase of cloud migration and cloud services, the motivations of organisations to outsource their IT has changed. Consequently, it is now more focused on business growth, customer satisfaction and competitive disruption.
As a result, this change in preferences has driven vendors to integrate their in house and outsourced teams.
How has the global pandemic affected IT Outsourcing?
The global Covid-19 pandemic has exposed the vulnerabilities in supply chains. However, in this climate, IT organisations became the providers of critical IT services. Additionally, the work-from-home mandate lead to a surge in demand for employees needing the correct tools and technologies to enable the speed, security, quality, and overall efficacy to continue providing their service.
An example of why you need to keep your IT up-to-date
This market research indicates that, despite the disruption from the pandemic, IT outsourcing is still crucial for your business. Take the example of banks and financial institutes.
Financial institutions are increasingly outsourcing their processes and services because, without a robust and comprehensive IT strategy, banks have a little chance to survive and attract customers. Customers now want streamline access to their banking services. As a result, more IT outsourcing companies are proving migration to omni-channel platforms so that customers can access their data from any device. Additionally, these platforms also provide data and analysis so that financial institutions can improve customer experience.
Furthermore, small business can learn form this model. You can improve customer experience by making you IT work seamlessly and therefore give yourself the competitive edge.
What you need to look for in an IT Outsourcing provider
Given the above, to stay competitive, you need to look for an IT provider who can offer directly or manage a broad spectrum of high-class services.
Secondly, rapid development cycles mean that you should be on the lookout for an agile enterprise that can embrace you needs promptly. Efficient service delivery is a must, and one for the best ways to become efficient is through IT automation. Second only to security, automation is the most crucial trend in computing. For example, automation provides efficiency and proactive capabilities that human labour can’t. The consensus is that if you want to compete, you must automate.
How can I keep my IT up to date?
If you want to compete, your IT has to provide digital transformation. Know that you don’t have to go it alone and that the services of a reliable outsourced IT team to support in house staff are the key.
Contact us today to find out more about what we can offer you. We can help you with all your in-house and outsourced IT. Whatever your strategy, we are here to help.