Outsourcing helps organisations meet internal talent gaps and business needs in a cost effective way. As Tech Republic states, about 31% of IT jobs were outsourced in 2017 and the same trend is only expected to grow in 2018.
Why do companies outsource? The primary factor is the amount of cost savings that outsourcing offers due to the arbitrage present between the natives and the foreigners. Then comes the lack of IT talent in the population, many countries are facing a large shortage of quality engineers and IT specialists to meet their IT automation requirements.
India was one of the top outsourced countries in the world as of 2017 with a net evaluation of $14 billion of total capital flow. This fact explains the inherent need for outsourcing in developed countries.
So what sectors of IT are doing better than others when it comes to outsourcing? In this article, we will take a look at the specific trends that dominated throughout the previous year and will continue to march this year as well.
Application Development
Application development which includes business productivity apps in the form of web and mobile was the most frequently outsourced sector of Information Technology previous year.
With big multinationals realizing the potential of such applications in their workflow, this trend is more than understandable. One single application now handles the manual labour of 5-6 employees and contributes towards saving a significant amount of capital resource for the company.
For instance, in the FY’17, Dikonia did a horde of international development projects, out of which, Business Process Automation was the most popular domain of work for us. We developed everything from custom business workflow automation solutions and SaaS applications for our clients.
Coherent with the trend, application development also highlights the business interest of companies of all sizes in this domain. In a report it was discovered that large organizations increased their outsourcing budget by 2.4% where as SMBs noticed a similar rise of about 1.1%.
The key functions in app development for 2018 are believed to be lead by Web Apps for business development. Other functions such as Machine Learning, Chatbots and AI, Open Source applications, Internet of Things, and Game Development will also share significant popularity this year.
Data Center Operations
As the reliance on IT infrastructure is increasing, the need for upholding the data exchanged in-situ operations and in intra-networks is also rising. For the simple reason that majority of business applications such as Customer Relationship Management platforms and company’s internal databases all rely on some kind of an owned or leased Data Center.
In 2017, 58% organisations put online file storage in use as a integral part of their business workflow and this is just one example that demonstrates the need of a data centers.
Outsourcing data center operations and management to countries with a trained IT taskforce saves companies a huge chunk of capital. This capital was otherwise to be spent on employee training, setting up separate admin panels and creating more relevant jobs to meet the business needs.
Whereas, simply outsourcing this domain to top IT outsourcing companies in India can work get the work done in a faster and much more reliable way.
Desktop Support
Desktop support refers to technical support provided to desktop users via a personal technician or via telecommunication media. As business processes and general purpose technologies get in a tighter grapple of Information Technology, learning or familiarising with computers is becoming a highly important skill.
This skill is still lacked by most of the developed nations such USA and UK, where a majority of population relies on some kind of technical support for resolving minor to minor PC related issues.
Companies that subscribe to managed backends and platforms also need a heavy amount of desktop support for carrying out regular to critical business tasks.
Desktop support is a big time player in outsourcing since ever outsourcing was invented as a concept, and still has a strong grip on the market. The same is expected to be observed in this year’s annual turnarounds.
IT is the backbone of the computer economy and wherever a gap in its implementation will arise, it will be met with an outsourcing strategy. Applications that help businesses streamline and automate their processes were the most popular function of outsourcing followed by data center operation and desk support.
What will break records in 2018 according to you? Let us know in comments.
There are many reasons why companies may choose to outsource certain business functions, the most obvious one is cost saving.
Outsourcing enables companies gain access to world-class capabilities. More and more companies are streamlining.
Some good thoughts on outsourcing trends
good take on the outsourcing trends
Chhavi is the Founder and Partner at Dikonia. She is passionate about delivering beyond expectations and crafting rewarding experiences. Her company provides innovative IT solutions including custom SaaS offerings that streamline workflow as well as development and design services in keeping with latest buying and market trends. Chhavi holds a Master of Computer Applications from Punjabi University.
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