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Changes in the IT Outsourcing Market over the Last 5 Years

Changes in the IT Outsourcing Market over the Last 5 Years

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Outsourcing has become a key element for the improvement of practices in a company, providing the necessary flexibility to give an efficient and fast response, improving the competitive position of companies.

The IT outsourcing services market is in a phase of sustained growth. It is estimated that since 2015, investment in outsourcing models has increased more than 15 percent annually.

Outsourcing is constantly evolving. Today, traditional single-vendor outsourcing models are evolving towards multi-vendor-based models that provide competition and improve quality by generating an internal market that keeps vendors alert and ready to compete.

From the point of view of outsourced functions, companies have gone from the outsourcing of layers, processes or infrastructures to the outsourcing of complete business functions or in how it is being seen in recent times to use the outsourcing model as a catalyst for plans of business transformation. Outsourcing models in which what is sought is the success of a transformation and in which the ‘outsourcer’ is an important piece in the company’s change management process.

This evolution is allowing outsourcing clients to standardize their processes and, for their part, suppliers have to maintain the levels of productivity and quality that allow them to continue competing in an open market, although the certifications of their companies in the different standards of Market quality does not ensure this ability to compete if they help to improve internal processes.

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One of the keys to the success of outsourcing is the implementation and assumption of a relationship model that involves the company in the process. One of the most common mistakes that outsourcing may not be successful in is completely relinquishing control to the outsourcer on an exclusive basis.

Understand that it is competition in an open market in which the client is able to compare various providers with parameters beyond price/hour, which will make the service obtained optimally. It is easy to fall into the simple comparison of the unit price per hour of work, and think that through a well-managed contract it is possible to obtain the best of services. But this is not usually the case.

Among the services that stand out for their growth we can find:

  • Management of the application portfolio.
  • Software factory and custom application development.
  • Remote maintenance service centers that support and manage the applications.
  • Internet portals and environments.
  • Comprehensive business processes.
  • Certification and optimization of systems.

The outsourcing of these services will allow obtaining benefits, among which it is worth highlighting:

 

1. Quantitative:

  • Savings in the total cost of ownership and infrastructure management.
  • Cost reduction in the administration of alliances and suppliers.
  • Reduction of costs and project delivery times through reusable components.

2. Qualitative:

  • Highly qualified personnel in present and emerging technologies.
  • Access to DMR alliances with global technology leaders.
  • Consultants trained in different business sectors based on complete business solutions.

We understand outsourcing as a long-term partnership with clients to achieve their development objectives and business strategy. Therefore, we believe that reliability and flexibility to adapt to business demands and the needs of the information systems that support them are the keys to outsourcing success.

It should be noted that the turnover of IT Services companies has had a year-on-year growth of 14% between May 2020 and May 2021. With the pandemic, the IT outsourcing market has become an integral part of many big companies on a global scale. However, medium and small-sized companies, 2019 and 2020 only show an increase of 13% in IT outsourcing as they turned to cloud technology in terms of security service. In this way, IT outsourcing was no longer necessary.

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