How IT Outsourcing Triggers Business Growth Amidst COVID Uncertainty?
IT outsourcing has been the backbone of businesses for long. Building on its presence, the IT outsourcing market is poised to grow to $396.6 billion by 2025, up from $92.5 billion in 2019. The growing dependence on IT outsourcing companies can be attributed to the ongoing pandemic that has adversely impacted resources and operations.
Evolving Market Dynamics
Working from your favorite café or participating in that huddle in the big conference room looks so surreal suddenly. The workplace transformation forced by COVID-19 has made work-from-home a permanent arrangement for organizations across the globe. 62%1 of employed US citizens worked remotely at the beginning of April 2020. The number of remote workers is expected to double2 by 2021.
Remote work was never a favorite with businesses and stood as a roadblock in encouraging businesses to find a suitable outsourcing partner. Businesses for long overlooked or avoided outsourcing because they insisted on having in-house teams, expecting more productivity and credibility. But ask a business head who has a trusted outsourcing partner, and he may beg to differ.
Survey findings show that opportunities for IT outsourcing companies are enormous. Productivity in remote teams is never compromised. Companies have fewer workers on their payroll and can scale or curtail teams at will. Finding resources with multiple skillsets within tight timelines is another boon of outsourcing. Organizations who were discontinuing outsourcing contracts to grow their in-house teams and, most importantly, to endure the first wave of the coronavirus restructured their business models, turning the tide in favor of IT suppliers. Driving this surge in demand for IT outsourcing is the need to sustain and invent at a pace. The pandemic and its unique demand for touchless digital solutions have further fueled the demand for innovation.
The Need for Innovation
When COVID-19 hit the globe, it became crucial for companies across the globe to accelerate digital transformation. Companies could not take a chance of postponing their digital business transformation efforts for years. According to a Boston Consulting Group survey conducted in the last quarter of 2020, 96%3 companies expect to speed up their transformation projects.
As organizations step up their game to develop modern tech solutions, they understand that they cannot achieve it within expected timelines without having an IT outsourcing company. Companies driving technological innovation and accelerating transformation projects rely heavily on third-party service providers, even as they build in-house capabilities. Another advantage of IT infrastructure outsourcing is the availability of pay-per-use models that ensures you are charged only for the infrastructure service used or consumed.
The way to technological innovation is not a cakewalk. While it is a challenge for companies to propel digital innovation without on-demand IT outsourcing, finding the right outsourcing partner, on the other hand, provides businesses umpteen advantages.
Benefits of Partnering with a Seasoned IT Outsourcing Company
#1 Cost-Effectiveness
Outsourcing the IT needs and infrastructure of your company serves as a viable, cost-effective solution. The pandemic proved to be a massive blow for global companies in terms of expenditure, compelling them to mitigate their infrastructure and operational costs. According to Gartner, infrastructure and operations (I&O) make up for two-thirds4 of overall IT costs. So, this should be the most obvious area to reduce expenses. Besides, global IT spending continues to increase every year. It is anticipated to grow by 4%5 in 2021.
The sooner you choose to outsource, the better it is. Through IT support outsourcing, you can promote saving on capital outlays for IT resources, eliminate the need for extensive training of your in-house IT teams, and hire people on a project basis. For most businesses, on-demand outsourcing is a means of effectively paying-as-you-go, unlike making more significant capital investments upfront.
#2 Scalability
Businesses increasingly turn to outsourcing as it is a low-risk way of scaling their enterprise. If you are a company launching a new product, you will need to ensure temporary inventories to deal with a surge in demand, if any. This could mean extra logistical support due to extra warehousing, improved computing power, more call center personnel, and salespeople. Moreover, with growth comes “n” number of issues that should be addressed. Adding new infrastructure is not always a viable solution. You cannot anticipate and account for things that change faster and exponentially as your business scales. In this scenario, IT outsourcing and consulting businesses readily take all the pressure. Your technology partner, generally, has the resources in place to tackle fast and exponential growth, thus fostering scalability.
#3 Time-to-Market
The faster you develop your product, the quicker you can get to the market and increase revenue without facing much competition. Besides, a product developed the right way will be fully functional, allowing you to run operations smoothly without losing focus on your core business. As you outsource your IT operations, your software product development process stays on track and is exposed to very few critical obstacles that can derail your planning and product launch. Working with an outsourced team ensures that your production and IT outsourcing teams are on the same page and lose minimal time running revisions. You learn what to expect from one another, leading to less risk of error and faster time-to-market.
#4 Flexibility
Outsourcing your IT department helps to bring in flexibility in your digital transformation projects and IT operations. Remember, even the most well-planned projects may end up abruptly behind a pre-defined timeline or, there may arise a time crunch due to change in plans, minor errors, or other unforeseeable activities. This calls for increased agility in project planning, management, and execution. Reputed IT outsourcing companies practice the co-flexi engagement model, allowing you to pay as you use the resources. According to your need, you can hire the resources and have the option of outsourcing only a part of your project or a few of your IT operations. Your on-demand service provider readily makes changes to your project as per your varying requirements. Therefore, it is prudent to choose an IT outsourcing service provider who offers you resources and takes charge of delivering your project within the pre-specified timeframe and budget.
#5 Access to the Global Talent Pool
Outsourcing IT operations should form a part of your company’s longer-term business strategy. To stay relevant and competitive on the world stage, you need expertise and talent. Businesses, empowered by technology, are increasingly embracing outsourcing and offshoring to access state-of-the-art technology and systems in all their commercial activities. Contracting an on-demand service provider enables you to bring new products and services to market faster, leveraging the global talent pool. Your third-party service provider brings the skills and experience that help you to understand what could be considered or done differently in a project or your IT operations. Besides, the best part about outsourcing is that it ensures maximum productivity with access to the scarcely available skilled resources. Businesses are turning towards highly productive external IT teams with their services designed explicitly for remote IT support enabling the best minds worldwide to work on a single project.
Are You Ready to Outsource Your Next IT Project?
Technology is integral and a constant for businesses to fight against the challenges posed by the pandemic. Businesses across the spectrum are quickly adapting to these changing dynamics backed by IT outsourcing services. Outsourcing empowers CIOs and CTOs to focus their time and attention on their businesses’ and core competencies while setting new objectives and finding ways to achieve them.
Compunnel Digital’s “3-2-1” approach is a tried and tested methodology that powers businesses from different domains to achieve their potential. Our approach gets you up and running in just five days. The 3-2-1 approach is not only cost-effective but offers flexible pricing, meaning you pay for what you use. Our experts, backed by more than two decades of experience in IT outsourcing across industries, are adept at driving innovation at a pace. They get to the heart of customer requirements and accomplish a balance between expectations and outcomes.