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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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Why Managed IT Services Have Become Prevalent in 2016

MSP

The face of the IT world is changing.  Small and medium businesses are now looking to managed service providers for IT solutions more than ever before. As of two years ago, studies found that MSP’s were only adopted by about 30% of organizations. Now, over 66% of organizations say that they have outsourced their IT in the last year.

Initially, this phenomenon of increased adoption began simply due to companies becoming more familiar with what a managed service provider actually is.

But in 2016, more businesses are not only grasping what MSP’s are, but what they’re capable of.

IT looking to MSP’s for the solution

Virtually every business today is looking to keep costs down but struggle with managing internal IT experts who are both affordable and efficient. Business owners often try to cut costs on their internal IT team but this only leads to suffering down time, reporting software glitches, and not having the man power to prevent security breaches.

Thus, they need a team of IT specialists that can work on their behalf and provide quality managed security services to them. MSP’s help businesses in many ways, but here is some feedback we commonly hear from those that have tried outsourcing parts of their internal IT work.

 

MSP’s commonly-

  1. Increase predictability for both workflow and budget

Because MSP’s set a monthly payment contract, budgeting becomes easier and more predictable. Additionally, weekly or monthly meetings create certainty in the work to be delivered by IT teams.

  1. Create efficient resource allocation

Understaffing leads to constant IT issues while on the other hand, having idle IT staff wastes huge company dollars. Managed IT services allocate the best IT talent, as per the company requirements, for much less than the traditional internal team while being able to compliment an already existing team.

  1. Cut the capital expenditure budget

With monthly billing, companies can move their employee budgets from capital expenditure to operational expenditure while paying less overall for IT support.

  1. Scale with the company investment

Not 100% sure what your company needs in IT? Feel like your company may be either over-investing or under-investing? MSP’s scale because they adjust their services as per your business requirements.

  1. Stay updated with modern technology

We’ve seen a vast revolution in technology over the last year. New mission-critical technologies are emerging more often now than ever before, and managed service providers never stop learning.

  1. Scale with any plans to expand

Whether you’re relocating or planning a new brand extension, MSP’s cover all new areas of your business and grow with you.

  1. Work more efficiently along with company experts

Outsourcing IT services allow companies to remove the responsibility of constantly managing an internal IT team. Quality managed service providers have instant access to the most talented specialists and do the staffing for you.

  1. Seamlessly integrate with any acquisitions

Acquiring a new company comes with its own set of challenges, but managed services aren’t one of them. Because MSP’s need minimal management and because of their scalability, they change with your brand.

  1. Benefit customer service through applications

Your customers expect the best from the applications/software they use from your brand. MSP’s allow you to put your best face forward with zero downtime and modern programs.

  1. Relieve distractions so focus can be put on the core mission

By removing the efforts and hours spent on fixing IT problems, managed services allow you to focus on mission-critical objectives. Business owners don’t think they should spend their time on damage control and neither do we.

Key Takeaways

Trying to take on the world is not always the wisest plan for small to medium business and often, it isn’t even feasible. But modern companies don’t have to go at it alone any longer. Outsourced IT is more refined and cost-effective than ever. Find out more about what we do and how we do it here.

 

 

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