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The year 2017 and 2018 has been tough for IT Outsourcing Industry! Although, outsourcing industry across the world was gripped and threatened by such breaking news; the industry bigwigs have proved to be immune. Also, the growth rate has declined, but the overall business has increased and will substantially grow in 2019.
IT Outsourcing trends have become more dynamic and induce a thrust for companies to go beyond the finish line this year.
We are just sitting in the third month of 2019 but there has been a major paradigm shift in the IT Outsourcing trends. There have been a lot of changes in the working pattern and requirements of the organizations invariant of their size and industry.
The reason why these major changes are being observed by the outsourcing companies is that the organisations that are looking for an efficient IT outsourcing company are now more aware of the overall technology working environment. Companies are becoming more insightful and savvy when it comes to acquiring the right talent for their projects.
While the future of the IT Outsourcing is bright and shining- however, the future of IT outsourcing companies is heavily dependent upon how they adapt to these changing market needs and how they can comply with well-informed customers and their technology requirements.
Based on the past experience and wisdom required to tap the current market trends, Radixweb has been a beacon of IT Outsourcing for its global set of customers.
Here’s Crux of IT Outsourcing Trends of 2019 that will Shape Your Business
1. Talent is the Winning Strategy
No matter whether the company is a core IT organisation or serves in non-technology domain, the focus of all the potential customers looking for software development outsourcing companies have now shifted from price orientation to talent acquisition.
Organisations are no longer handing out their projects to the companies that provide the lowest bid! Talent and capabilities of any preferred IT outsourcing company has taken the first base.
Companies have now understood that the technology trends are constantly changing and they need to seek a Technology partner that has the potential and talent pool that upgrades them with ever changing IT Outsourcing trends and scalable needs.
Start-ups, SME or Fortune 500 companies have now fully adopted the notion of technology dominance in their business and know how software solutions help them gain their market leadership.
This shift in the Outsourcing trend is observed because of the companies that provide low quality projects developed in the obsolete technologies under the cover of cheap services.
2. Data Security is the New Priority
2018 had witnessed some of the biggest ‘Data Breaches’ of the world. Even the biggest players like Google and Facebook had faced severe backlashes and financial blows because of the Data Breaches! Also, in the last couple of years, the EU GDPR (General Data Protection Regulation) and the data protection regulations of the USA has picked up biggest momentum.
So, the clients that are looking for enterprise level software and projects are now more aware and alert of the problem of Data Security. With such delicate times, we have observed IT Outsourcing trend where the clients that are looking for IT Outsourcing Company not only ask for the confidentiality of their projects, but they are also looking for companies that can provide them with the best Data Security infrastructure.
3. Contracts made as Technology Partners and not just as Outsourcing Company
According to a survey, 70% of the businesses that are currently Outsourcing their technology requirements are planning to increase their use of Outsourcing services in 2019. But, there have been a lot of changes in the contracts that are happening between the clients and IT Outsourcing Company.
Especially, when we talk about a new or non-tech company looking for Software Outsourcing Company- they are now actively understanding the risks and responsibilities of every project and hence are looking for technology partners and not just the IT Outsourcing service providers.
There has been an inclination towards software development outsourcing providers that are willing to share the project risks and responsibilities and are ready to work on IT projects that are more outcome based and not output based.
With the increasing need of faster go-to market and constant innovation, outsourcing seekers know that an IT project will be a continuous one and hence they need to forge long term relationships with IT Outsourcing companies to help them reach their desired outcomes in the desired time-frame.
4. Rise of the Multi-Vendor trend
It is not feasible for any IT Outsourcing Company to achieve all the technology needs of their customers. Especially, with the huge enterprise level projects, we have observed this IT Outsourcing trend where customers outsource their projects to multiple vendors for faster and effective delivery of the project.
Thus, the IT Outsourcing Companies that can co-operate with other companies and can align their tasks with the project will be able to gain more traction from the big IT as well as non-IT clients.
As per ISG data, once the staggering figure of 42% of single vendor projects in 2008 has dropped to mere 15% in 2018! Even the IT Outsourcing companies are aware of this paradigm shift and hence 34% of outsourcing companies rate themselves as compatible for maintaining multi-vendor environments.
5. Use of Cutting Edge Technologies
One of the biggest reasons of the upward trend is the use of cutting-edge technologies. Instead of hiring an in-house team of experts, companies are outsourcing such needs to IT Outsourcing company with the right mix of capabilities and technology expertise.
Block chain, Automation, IoT, AI, VR and AR are the recent buzzwords for technology. We have observed that IT Outsourcing trend amongst technology firms that instead of hiring talent for these technologies, they are even outsourcing their core business services to other players in the market.
Your Go To Partner- Radixweb for Your Tech Needs
Thus, it is evident that while the future of IT Outsourcing companies is bright and shining, only if the IT Outsourcing Company showcases traits like uncompromised quality, un-paralleled customer support and commitment to walk an extra mile without cutting corners will sustain and thrive in the market. Contact us to diminish your tech troubles with our wisdom wand.