The 3 Main IT Outsourcing Trends Of 2019

The 3 Main IT Outsourcing Trends Of 2019

Outsourcing has been proven to make you happier. A recent study has discovered that outsourcing time-saving services like household chores is a sure fire way of improving your life.

It makes you wonder if there are any outsourcing trends that can make your business life better.

The state of IT is always changing and evolving. Here are the 3 main IT outsourcing trends of 2019 to keep you up to date and informed.

1. Outsourcing Service Geography Changing

The outsourcing model in recent years has been to base services in India and China. Lower costs combined with plenty of educated and skilled people made this the right commercial decision. Changes in supply and demand are challenging the conventional model.

Eastern and Central European countries have been growing in capability. Developers represent 1.3% of the workforce in the region. Poland, Slovakia, Estonia, Ukraine, and Latvia are all making strong progress.

The U.S. government has been vociferous in condemning the export of jobs and supportive of repatriated jobs. Technology outsourcing is no exception.

Outsourcing providers are laying off teams in the far east. They're growing teams in the U.S.

They're not returning to the traditional tech locations of Silicon Valley and the East Coast. Onshore outsourcing has sought out the lower cost U.S. locations. Small towns with lower salaries and real estate costs have been the beneficiaries.

The changing geography of outsourcing will continue to be dynamic with costs and talent being key drivers.

2. Changing Relationships

Outsourcing is the go-to strategy when adopting new technology. Expertise was easier to outsource than to grow at home, especially if the need was urgent and resource hungry. The trend is now towards outsourcing even core activity.

The driver for this trend is the increasing complexity of core technologies as well as the pace of change. More integrated relationships with outsourcing providers will lead to innovation in contracts. Also, there's likely to be a change in the dynamic of the outsourcing competitive environment.

An example of this is the increasing use of cloud services. Increased demand will drive these relationships. There'll be more sharing of responsibility for cybersecurity and competition between providers.

3. New Technologies

Business engages with change when it needs to compete. Technology is a source of competitive advantage.

New technologies are emerging as the battleground for competition. Trends in IT outsourcing reflects these emergent technologies.

Artificial intelligence promises much especially in the area of machine learning. Automation and virtual agents together with robotics are changing the world of work and business. 

Staying up to date, at the cutting edge, is difficult to achieve for many businesses. They will come to rely on outsourced expertise to help them leverage their technology investments. Sustaining these developments will also depend on those long-term relationships with outsourcing providers. 

Partnerships in IT Outsourcing

Technology is a key source of competitive advantage. Some businesses will develop effective relationships with IT outsourcing providers. These business partnerships will secure a competitive advantage and make those businesses sustainable in the long term.

Secure your advantage and find out more about IT outsourcing here.