The Future of Information Technology Outsourcing

By Technology Ally

Among many other factors, one thing that gave life to startups in Silicon Valley during the 1990s is venture capitalism. The result was a large number of small companies.

Not every start-up survived the challenges of a rigorous, competitive market, but those that did became successful names in that domain or at least, rose above the status-quo of a startup, and placed themselves in the category of mid-scale organizations. These medium-sized organizations were still carrying their legacy of flexibility, adaptability, and customer friendliness.

Mid-scale Organizations given whole New Wings to IT Outsourcing:

To carry this legacy forever, some companies chose to remain lean. But the decision never halted them from becoming “Small Giants”, with a huge and prestigious client list.

These mid-scale organizations have given whole new wings to IT outsourcing, bringing in better interdependence facilities to cater to the technology requirements of the companies. Businesses with a non-technical background chose these medium-scale IT companies to outsource their IT operations. This helped in cost-saving and time-saving.

But there was more involved than cost and time. It was technological adaptability. Mid-scale organizations were quick to adopt the latest developments in technology and, accordingly, facilitate the client. The trio of cost-saving, time-saving, and adaptability was welcomed by businesses from around the globe.

High cost and lack of talent drove the businesses to explore new territories, which led to the development of IT offshoring. Innovation in technologies and the growth of the cloud made it possible for businesses to cross territorial boundaries and seek cost-effective solutions.

Now, it is possible for businesses to outsource a wide range of IT activities from the development and implementation of applications to monitoring databases and administration systems. It may also include IT desk support, IT maintenance, backup, and recovery.

The decision to choose an IT offshore company has never been an easy task. It’s like an arranged marriage! Good luck if it works well for you!

Every company has their own story of success and failure, but some of the common factors include better planning and methodology, prior focus to the delivery system, and the time and cost involved.

IT offshore service providers offer good rates, but the quality of the services differs. Additionally, cultural influences and legal and regulatory restrictions may also have an impact on the arrangements. The key is to track the similarities and differences in terms of work ethic and language, then move ahead to check the legal and regulatory regime. Good initial and follow-on communication are always important in every phase of IT offshoring.

Role of Big Industries in IT Outsourcing:

In the IT offshore service industry, big players like TCS, Infosys, Accenture, and Cognizant will continue to hold the major share, bending the rules of the game for industrial development and growth. But then, there are numerous mid-scale IT organizations that cater to medium as well as large-scale business houses to carry out their IT operations.

In the era of digitalization, with the growing number of media and social media companies, there has been a need for better data management and storage systems.

In this regard, another trend that has gained substantial influence is having offices, though small, in various countries. Most of the mid-scale organizations have offices, or at least, a spokesperson, marketer, or a salesperson in the country from where it is getting maximum business. This increases trust among customers.

With mid-scale IT organizations on the rise, large businesses sometimes do not give the entire department to just one organization but rather distribute it by region. It helps in lowering the risk of malfunctioning and security threats.

The future of outsourcing is these mid-scale organizations and their capability to access new technologies, having a small, effective, but widespread presence, and remaining proactive.

It is also easier for these organizations to hone the talent of an employee based on new developments in the technology, or to quickly adapt to the changes. With little support from the venture capitalist, it is possible to upgrade the infrastructure and provide high-quality solutions.