2016 IT Outsourcing Trends – How they scale up businesses

serversWith an increase in standardized services and streamlined practices in the vast world of IT outsourcing, we’ve seen some trends rise to the top in 2016. These trends are the product of intense competition to be the most secure, the most cost efficient, and the most effective at producing results.

The first product of this competition is…

Full service has become standard

IT outsourcing vendors are quickly moving towards further centralization in the way they deliver IT to clients. This centralization causes IT services to being outsourced at a lower overall price and a raise the productivity level of agency workers. Centralization causes this because companies using IT outsourcing are beginning to rely less on multiple vendors and are instead looking to a single IT service company to solve all their IT issues.

This increasingly common trend is seen in leaders like IBM or HP. They’ve moved from a fractured system of IT service to a more centralized, single service contact point.

This shift allows services to be deployed more quickly across the board. When employees on both sides of the IT exchange expect a predictable and standardized operation, efficiency is increased.

And this trend is the natural progression of companies adapting to the demands of the industry to become more scalable. Without this centralization, scaling up would be heavily hindered.

Further Evolution of Hybrid Cloud

Using the hybrid cloud model has become recently hugely popular because of the unique benefits it offers companies. Using a mix of private and public clouds gives instant access to business processes with amplified security due to the private cloud options.

But companies are still juggling the balance of how to allocate their public and private server investments. This balance will be shifted by the increased importance of big data analysis requirements, system flexibility, data security, and IT governance.

Most cloud specialists say that in two years from now, half of all IT spending is going to be funneled into the cloud. This is compounded by the fact that the cloud provider industry is set to grow to $139 billion in two years. So now large and small cloud providers alike are signing more hybrid deals, like IBM’s recently signed contract.

Even the Vice President of Oracle states that hybrid cloud is their priority focus and that all their products are in the cloud right now.

Machine automated IT outsourcing

Reaching a plateau on cost-savings through employees, many IT outsourcing companies are looking to machines to automate as much labor as possible. Some buyers are likely going to be looking over their contracts again this year after the work they are paying for has been moved from humans to machine automation.

IT processes like big data analytics with cloud computing are going to be automatically handled solely by computers more and more. And now that the public is becoming more aware of this change, clients will be asking about automation options before employing new vendors.

As traditional human jobs become performed more commonly by machines, new job requirements and skills will be defined. This will also change the level of flexibility between contracts with vendors and buyers.

Want to hear more? See some of the ways we outsource IT here.

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