Will IT Outsourcing Bring Business Benefits in 2021?
6 Key benefits of IT outsourcing for business in 2021. The latest industry tendencies. What to consider when outsourcing IT companies?
15:17 03 November 2020
Benefits of IT Outsourcing for Business in 2021
IT outsourcing is a revolutionary phenomenon that has changed the way things work in the rapidly growing IT industry. Lots of companies, from small startups to large corporations, now turn to outsourced IT services. But what is waiting for IT outsourcing in the future? Let’s figure out the future trends and benefits of IT outsourcing in 2021.
Main advantages of outsourcing IT for 2020
Statistics show that more than 75% of IT companies currently hire outsourcing teams. And the majority of them plan on continuing to develop using managed IT services. Due to the pandemic, the business sphere faced significant challenges. IT outsourcing for business has helped companies navigate these rough times and optimize their resources and improve productivity. Let’s single out the main benefits of outsourcing IT in 2020.
There are excellent outsourcing services but also not so great ones. It is crucial to choose a provider thoroughly and wisely to ensure that you get the maximum benefit from outsourcing IT, including experienced and skilled specialists who know how to apply all kinds of technologies. A good outsourcing service can deliver an excellent product without spending too much time or effort. You can quickly and easily manage their work and get a final product that corresponds to all personal requirements. By hiring an inexperienced staff, there is no need to train anybody.
Another side to this advantage is the cutting-edge technologies and tools the third-party employees apply. Your in-house tech employees may not possess as much expertise or be aware of the latest market trends.
When comparing in-house vs. outsourcing IT services, the cost is another significant and obvious advantage. However, affordability shouldn’t be your main focus on how to choose co-managed IT services. Low price often corresponds with low-quality service. You can find the lowest prices in Asia, but the quality of service is often lacking. So don’t select a firm strictly based on the lowest price. Hire a company that values high quality more than affordable prices. It is possible to get both a reasonable price and the highest-quality if you seek out-sourcing companies from areas of the world known for their advanced IT skills, for instance, Eastern Europe. Outsourcing companies from this area charge half as much as American companies while providing superior services.
Concentrating on the core tasks
Outsourcing is a perfect solution for the company if the in-house employees are overwhelmed with deadlines and need to spend time doing secondary work. Instead of developing the project and applying creative ideas, the staff is distracted by routine, time-consuming work. Being able to concentrate all your time and effort on the task at hand is a great advantage. The outsourcing company can focus on the IT development project, and your employees can stay focused on their regular duties.
However, things are not always so perfect. The sphere of IT consulting also faces several challenges when outsourcing. The 2020 economic crisis revealed the weakest spots of this phenomenon:
- low-quality services and unreliable providers;
- hidden costs and financial burdens;
- risks concerning data security and confidentiality;
- loss of the process control;
- language barriers and business culture differences.
Companies that have unpleasant experiences tend to retreat to in-house managed services. The key is researching the company before hiring them and putting everything in writing before starting any project.
Projections for 2021 show that companies will be looking for new ways to make outsourcing more efficient and reduce risks.
The future of outsourcing IT in 2021. How are things going to change?
The focus will change to the key tasks
The top tendencies show that outsourcing will switch its focus from non-core activities to the key ones. The aim will be to save money by getting access to more skilled and experienced IT specialists for critical tasks.
Saving money will continue to be the main benefit
The financially unstable situation due to the crisis has demonstrated that reducing expenses is still the main focus. Many companies turn to outsourcing if they lack money to hire a qualified in-house team. They can also use the saved costs for other company needs.
Standardization of IT outsourcing services
Another meaningful change is that the companies will turn to standardized services instead of custom ones. The reason for this is that personalized solutions are more expensive than standard ones. Companies will prefer to use money in other spheres, such as finding new potential customers and developing new business strategies. The tendency to optimize costs will lead to the popularity of automation tools. They allow developing new opportunities and reducing staff to maintain business applications.
Outsourcing will still be a benefit for small projects
Outsourcing of startups is going to increase and become a new normal for the market. Big corporations will continue outsourcing their large projects to the top outsourcing companies. But the most notable will be the boost of startup outsourcing. They will be looking for smaller but reliable service providers, which are more flexible and specialized in a particular sphere.
Cloud sourcing will grow
It is predicted that cloud sourcing will combine with the already existing outsourcing market. It is going to present better opportunities for the whole industry. The reason is the increasing interest of businesses towards flexibility, adaptivity, and cost-effectiveness. So outsourcing services should change their existing infrastructure to become more cloud-enabled.
Reputability will become crucial for outsourcing services
Potential partners will choose outsourcing companies more thoroughly. Being more open about your services will be essential. That’s why reputation is the main thing to work on. Building a review system and giving access to the finished projects will let your potential partners know who you are. Following these steps may dispel any doubts concerning your trustworthiness and work quality.
It is difficult to overestimate the contribution of outsourcing to the IT industry. It has become a life-saver for many companies during the crisis. Outsourcing is going to remain at this leading position during the next few years. Moreover, it will strengthen its positions when it comes to small companies seeking outsourcing. The new tendencies, such as cloud sourcing and outsourcing key tasks, will prevail in the IT industry. If you still have any concerns about resorting to IT outsourcing, there is no reason for it. Choose a reliable provider and be surprised by the benefits it will bring to your business.