IT Outsourcing Trends of 2020

The IT outsourcing market turned out to be stable, having fallen into a zone of turbulence due to the pandemic. In some of its areas, growth is expected. For example, outsourcing of cloud computing, infrastructure, and Software-as-a-service are leading trends right now. Despite the need for businesses to save on IT, including, companies still require computing power and other IT services. And in the short term, they are more affordable through an outsourcing model. During the pandemic, the need for companies to organize remote workplaces and to ensure their performance has increased extremely. The direction of virtualization of the workplace (VDI) made a leap forward and led to the growth of related directions.

According to GSA UK monitoring, outsourcing trends are rapidly changing. In 2020, the relationship between outsourcing teams and clients will take on a more “partnership” color. Companies will be on the lookout for innovation and implement it quickly. Here are the key principles that will guide the industry in the future. Let’s discuss this and other trends in more detail.

Service Value as a Priority

Almost 90% of surveyed are sure that after 2020 they will conclude contracts, focusing on the value of the services provided for both parties. 69% of respondents believe that outsourcers will act as system integrators, and will share the risks with their customers. A third of the survey respondents say that outsourcing firms will take absolutely all risks. FPT Software follows all current trends and innovations in IT outsourcing, and the main reference point for us is to meet your requests and needs with high quality.

Service delivery questions will be a critical part of the contract, and the duration of the agreements will be shortened. In the future, this will lead to an aggravation of the competition, so the performers will have to offer quality solutions and fight for valuable offers.

Reducing IT Costs is No Longer the Main Thing

We are used to seeing IT outsourcing as a cost-cutting tool. But this point of view is no longer relevant. System administrators sometimes simply can’t handle workloads – they lack qualifications and efficiency. Clients increasingly focus not on cheapness, but on the effectiveness of a team that keeps up with the times and is able to become a professional partner.

Lack of Narrow IT specialists

As a result of the above-said, the main global IT trend of 2020 is a deficit of narrow specialists in IT outsourcing. This has led to an increased demand for IT outsourcing, where large companies can afford to hire rare talent to solve a specific client’s problem.

According to the Global Sourcing Association (GSA), the most sought-after, rare IT outsourcing specialists in 2020 are:

  • digitization specialist;
  • digitalization designer;
  • automation specialist;
  • digital security manager;
  • strategist and business operations analyst;
  • specialist in design thinking.

Cloud Technologies

The demand for cloud technology is growing steadily from year to year. Cloud platform owners are more motivated to increase service quality than ever before. In this regard, IT outsourcing of cloud services is entering a new stage of demand in 2020. Service-as-a-service is already an integral part of the virtualization process for most enterprises looking to reduce hardware costs and open up more businesses.

Automation of Manual Processes

According to the GSA report, 80% of surveyed believe that artificial intelligence (AI) will be critical for business in the next 10 years, 83% think the same about robotic process automation (RPA).

Virtual assistants and chatbots now make routine tasks much more manageable. 2020 is the year of AI assistant development for the IT industry. As a result, customers of IT outsourcing companies are now interested in specialists in the field of artificial intelligence and data analysis (Big Data).

Focus on Cybersecurity

Over the past few years, we have seen increasing public awareness of data security. Cybercriminals are getting more dangerous and smarter, so they can easily obtain sensitive data. This situation creates a demand for advanced cybersecurity support. According to a Spiceworks survey, business owners find it essential to educate employees on how to prevent cyberattacks.

A Growing Number of VR/AR Projects

The market for augmented (AR) and virtual reality (VR) has grown significantly in recent years. More and more clients are looking for specialists who can work with VR/AR technologies. According to various estimates in marketing solutions using gamification and VR/AR content, the KPI result is achieved faster with these technologies.

Competition Between IT Outsourcing Companies is Growing

Not so long ago, (in 2015-2016) India and China led the list of outsourcing companies. Now it is being replenished and expanded. Leading countries face competitors from Eastern Europe. Many European IT outsourcing companies have grown exponentially to global indicators in the last year alone. They are already among the leaders of the IT outsourcing market on a worldwide scale.

Final Word

Successful entrepreneurs in 2020 strive to use the latest technology to reduce business costs and open up new directions. For expert IT infrastructure support and consult on any technical issues and challenges, contact FTP Software.