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IT Outsourcing Growth & Offshore IT Services Trends in 2015

Author: Gretel Digo

Posted: January 21, 2015

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IT outsourcing and offshoring IT services rose to an all-time high of almost 20 percent in the first three quarters of 2014 in the U.S., according to a report by the Information Services Group (ISG).  ISG expects a similar trend in 2015 based on the number of business process outsourcing (BPO) contracts for IT support, IT services, system/network admin services and market growth.  This is in contrast with earlier predictions in 2014 that about 30 percent of IT services would be brought back in-house as companies grew more confident about managing their own processes.  Besides a surge in market confidence, experts say that IT outsourcing and IT services in 2015 are headed toward:

Customization. Many companies lack the expertise, in-house talent and budget to build, support and oversee IT services that streamline business processes and improve the bottom line.  The need for custom delivery models and processes will also drive partnerships with a third party that can guide your company toward success.

Outsourcing as needed. Companies who have their own IT team are expected to augment their in-house staff with outside experts on as needed basis.  Many multinational corporations are already using this approach of combining internal capabilities with outside help when necessary.

Super data centers. Small data centers are now capable to handle much more as performance increases per kilowatt and upgrades add power.  This change requires asset use analysis, refresh cycle reduction, and core boosting to manage utilization levels effectively and retain a company's footprint.

Integrated data centers. Commonly separate networks, servers and storage will continue to be aggregated to optimize workloads and allow quick parts replacement. 

Resource management. Organizations will be more aware of energy use and KPI consumption, increasing the need for better-managed energy information systems. 

Mobile consumers. More people visited websites from mobile devices than from desktops in 2014.  The mobile consumer demands a change in mindset for many companies as e-commerce merges with the brick and mortar shopping experience.  The sheer number of devices that users demand platforms on makes building them a challenge, but cloud-based services and powerful data centers are bridging the gap and addressing security issues.  Mobile app development trends include multiplatform development, wearable tech, and new methods of customer engagement.

Mobile CRM. Startups are leading the way in customer relationship management (CRM) services designed for mobile.  While established vendors have trouble with their one-size-fits-all CRM approach, startups are innovating and bringing better mobile CRM applications to the table.

Mobile analytics. More sophisticated analytics and monitoring tools will allow companies to find out what content their workforce is accessing and what to do when issues arise.  Better analytics tools are also available for CRM, Voice over Internet Protocol (VoIP), and other platforms.

More cloud service options. The convergence of IaaS (infrastructure as a service) and PaaS (platform as a service) will drive app building, testing, and deployment.  Companies will also adopt hybrid cloud techniques, but are advised to develop after private services and public delivery have been integrated.  As systems increase in functionality, complexity also increases.  It's important to get the most out of IT spending with the right enterprise software.

Virtual networks. Virtual networks mean increased automation, improved agility, simplified design, network management integrated with IT workflow systems, and other changes in interaction and processes.  Experts suggest making storage virtual, evaluating inputs, trimming what is unnecessary, and organizing and prioritizing what remains.

Integration of business and social media. Social media, business services, and the internet are expected to consolidate through mergers and alliances, becoming genuineB2B and B2C business tools.

IT Outsourcing and Offshore IT Services Continue to Grow

As economic conditions improve in the U.S.  and confidence in the market grows, corporate clients are increasing their ITO spending as well as expanding the scope of ITO contracts and range of services.  However, outsourcing research and analysis firm NelsonHall warned that there's still room for improvement as offshoring providers compete and drive prices down.

In 2015, the best companies to take advantage of the ITO upswing are those who are able to provide the best customer experience.  Providers must have the right platforms and the right talent to provide top notch service and attract buyers.  Businesses will focus on outsourcing non-core operations to improve profitability and reduce costs, everything from IT support to systems administration to infrastructure.

Businesses will continue to adopt cloud-based services.  Cloud computing offerings are going to be more diverse and will cater to processes traditionally handled by in-house IT teams.  Besides Software-as-a-Service (SaaS), mobile and big data application development will also move to the cloud.

Many multinational companies are going to leverage the power of offshore cloud services as data security improves, compatibility issues are sorted out, and management tools mature.  CIOs will manage data depending on sensitivity and complexity, and those who adopt in-house and cloud-based models will be the most successful.

IT Outsourcing to the Philippines

As the volume and variety of data hitting the public and private sectors continue to snowball, the need to manage data effectively will also grow.  If your company is already making deep cuts but is still not streamlining process workflows or making a difference on the bottom line, it may be time to outsource IT services to the Philippines. 

The Philippines' IT-BPO sector is one of the major contributors to the country's economic growth, and forecasts are optimistic for the coming year.  The Philippines has the infrastructure and rich talent pool of experienced, English-speaking IT professionals and support staff to take your business to the next level. 


IS OUTSOURCING RIGHT FOR YOUR BUSINESS?

Click here for a great resource on IT offshoring in the Philippines.  This popular post, IT Outsourcing (ITO) & IT Outsourcing to the Philippines, can also help you in the decision-making process.  Or contact Sourcefit, an outsourcing company in the Philippines, for a free, no-risk consultation with an expert.  We'll help you explore the opportunities.

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