One major difference between today’s outsourcing market and that of a decade ago is that outsourcing is currently viewed as the mainstream strategy that has been successfully adopted across the corporate universe by companies large and small.
Global outsourcing revenue has been on an unstable trajectory since 2012. In 2018, the global market for outsourcing was worth $85.6 billion while in the last decade, corporations from the United States have outsourced more than 2.4 million jobs.
Why do companies outsource?
According to numerous outsourcing statistics, 59% of companies use it to cut costs., in addition, 57% of companies consider that outsourcing allows them to focus on their core business, while 47% of the companies use outsourcing as means to solve capacity issues.
Application Managed Services showed incredible growth rate in the previous year along with Infrastructure Management Services and Business Process Outsourcing. The predictions indicate that these fields will also continue to rise in 2020 so, it is clear that IT outsourcing will continue to rise as well.
These essential services are responsible for it, and in the last few years, the demand for IT outsourcing took over due to flexibility, delivery methodologies, and outstanding services.
To be more precise, the outsourcing world is not always pink, and it has its challenges that sometimes cannot be overcome. But these challenges appear in one to two cases, given the fact that the value of outsourcing remains significant and steady for a long time.
Three dimensions are always present that ensure proficientdelivery, a delivery that is most valuable to your business. Also, this candeliver long-term collaboration.
- Breaking down silos and introducing new ways of working – We live in a world where everything is continuously changing, and new ways are implemented by the second. Engage suppliers that offer new collaboration and bring methods to break down silos. You should ask for a demonstration of what they have done before. Keep in mind that classic process frameworks are not enough anymore. Explore new lean approaches. Do not forget to embrace internal cultural change when it comes to decision making and presentation of new roles. Do not give responsibility to agile teams at the beginning.
- You must be sure that your suppliers have the knowledge and own the latest tools and technologies when it comes to development infrastructure, project management optimization, and cloud infrastructure. That is the only way in which they are going to be able to increase the opportunities and to bring innovation.
- Find out new contracting approaches or design some of them. Make sure the design fits both you and your partners and allow the focus to be on your business and what matters to it. Implement precise and flexible mechanisms.
Besides reducing costs, IT outsourcing brings flexibility and improvement to one business. The talent is in massive amounts, and you should consider it if you want your business to go forward. Make sure you implement the previously written tips before doing it.