The market of IT outsourcing will continue to grow this 2019. Companies worldwide are more and more relying on outsourced IT services. Predictions for 2019 sees a more competitive IT outsourcing industry. More and more IT outsourcing service providers are joining the bandwagon and are starting to offer additional IT services. In a snapshot, here are some of the things that you can expect from the IT industry this 2019.
- Clients no longer look at cost when outsourcing IT experts
Clients are now looking into IT outsourcing service providers that are people and process driven. They no longer consider cost as the top prerequisite. Clients are still looking for cost-efficient IT outsourcing service providers, but they don’t make it the main factor when deciding. It is now an added value.
- Clients go for multiple IT vendors
Big companies are now taking advantage of different IT experts from different IT outsourcing companies. They no longer have in-house IT experts. Large companies now use different IT vendors for different IT processes. With this shift in a client-vendor relationship, IT services will have finer specializations. An IT developer will turn into a general area and it will be divided into front-end developer, backend developer, desktop developer, among others.
- New outsourcing hubs will be recognized
Eastern Europe continues to emerge as a major outsourcing destination, especially for higher-value services. Newly identified IT hubs also include Ukraine, Romania, Poland, and Belarus.
Even though Central and Eastern European (CEE) region does not have the same size as India as an outsourcing delivery destination, its rich talent pool of highly educated specialists together with the desire to deliver great excellence across the STEM (Science, Technology, Engineering, and Mathematics) industries, make this region a major IT hub for companies across the UK, German, Nordic and US outsourcing markets
With cost and skill to offer, these new IT hubs are getting more and more recognized in the outsourcing world.
- Changing Terms and Agreements between client and vendor
Shorter contacts are in and classic contracts are out. This year, vendor and client contracts will be based on the result rather than time worked. Contracts are now fixed with the expected date of delivery rather than the traditional hourly rate.
Shorter contracts are expected to make each client’s experience more personal while vendors are expected to be more goal-oriented.
With goal and value in mind, clients will scout IT vendors based on their delivered services.
- Core IT Business functions will be outsourced
Lately, there are vendors that are now outsourcing core IT business functions. Clients are now giving full trust to their IT vendors, revealing more information and allowing outsourced IT vendors to access more confidential information associated with their business.
IT vendors will become more of a partner to make strategic business planning and not just simply to watch out and fix IT issues.
GSA has projected that at least ¾ of companies will outsource their IT services in 2019. The market for IT vendors offering unlimited IT services and support is expected to continue to grow as well. IT outsourcing will continue to be popular even for non-core IT functions. The changes in the IT processes are rapidly happening and so are the needs for IT services worldwide.