What does the IT outsourcing industry have in store for 2019? Read this blog post to find out about the outsourcing trends that could affect the IT industry in 2019.
IT outsourcing will continue to grow in 2019 as per recent data. More and more IT businesses will choose to outsource their IT services to specialized outsourcing service providers. How much will technology change IT outsourcing? Will there a change in supplier-customer relationships? Which IT outsourcing trend will be the most impactful? Let’s try to answer these questions and find out what is in store for outsourcing in 2019.
Experts have predicted that new business models will change the outsourcing landscape. The IT outsourcing industry as a whole will become more collaborative and competitive. Customers on the other hand will look for IT outsourcing service providers who offer customer-centric services and who use the newest technologies.
Cost reduction will no longer be a deciding factor
In 2019, the relationship between IT outsourcing vendors and clients will be less price-oriented and more people and process driven. Though cost reduction will continue to remain as a benefit, it will no longer be a deciding factor when choosing a IT service provider. Clients will look for value-add services and capability to share risks rather than cutting cost.
Shift from single IT vendor to Multi-vendor environment
In 2019, no big organization will be able to supply all of their IT needs only with an in-house team. More and more big companies are likely to outsource their services to multiple IT vendors. Companies will look for providers who have expertise in specific areas. IT outsourcing companies on the other hand will move towards narrower specializations. 2019 is going to see the coming of multi-vendor environments.
New IT outsourcing destinations will arise
Currently India and China are the leading outsourcing countries. But 2019 will see a change, with new entrants like Central and Eastern Europe, Africa and the Middle East. These countries will offer stiff competition to India and China. Poland, Ukraine, Romania, and Belarus are said to be the new hotspots for software development.
Newer contract models
In 2019, IT service providers and clients will want new contract models, with shorter notice periods and better procurement. The new contracts will be based on outcomes rather than output. This will make the IT outsourcing experience more value-driven and interpersonal. Outsourcing providers will share risks and responsibility. Clients will now choose IT vendors who can deliver value.
Outsourcing of core IT functions will increase
IT outsourcing will change from the outsourcing of non-core services to core IT business functions, as supplier-customer relationships become trustworthier. IT vendors will emerge as strategic business partners and be equipped with niche specific IT know-how. Big companies will feel the need to tap into the skill and expertise of IT service providers in order to stay competitive and streamlined. Outsourcing of non-core IT functions will still be popular.
As per a recent GSA report, over 70% of companies are expected to outsource 2019. 35% plan on outsourcing core IT functions. The IT outsourcing industry on the other hand is expected to grow by leaps and bounds in 2019. What does your company plan to do in 2019? If you plan to outsource IT functions, look no further than Outsource2india. We are a one-stop destination for software and IT services. Find out more about our software services.
Did you like reading this post? Which trend are you able to see in your day-to-day business situations? Which trend is beneficial for your business? Let us know your views by leaving a comment in the box below. We, at Outsource2india love to hear from you!
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