IT outsourcing trends of 2019

IT outsourcing is steadily becoming the way to go for IT services, not only for startups and small services but for global enterprises as well. The reason is the same — lack of expertise.

However, while startups and small-to-medium businesses need web and app development and CI/CD services to launch their product, global companies require help with the things like IT infrastructure optimization, digital transformation and transition to the cloud from legacy infrastructure.

Businesses of all forms and sizes seek instant access to expertise, possibilities to cut costs and new ways to drive value to their business. IT outsourcing companies that can provide the full range of required services are called Managed Services Providers and they work as a single point of contact for all IT-related needs of any business. In order to remain competitive such companies have to use the latest IT outsourcing trends of 2019, like:

  • Outsourcing core business processes
  • New forms of partnership
  • AI-based routine automation
  • Migration from legacy systems to the cloud
  • The reduced importance of cost savings
  • Eastern Europe becomes a #1 IT outsourcing destination
  • Spreading workloads to multiple teams

Below we explain each point in more details.

Outsourcing core business processes

One of the main drivers of IT outsourcing was the need to delegate the non-mission-critical workloads to remote teams to enable the core staff to concentrate on growing the business. However, with the passing years, it became apparent that certain dedicated teams have more competence with mission-critical systems than internal teams the business has in place. Many businesses begin outsourcing even core tasks to minimize their spending — but only to the partners that they trust.

New forms of partnership

IN the past the efficiency of IT outsourcing cloud computing projects was evaluated through the prism of man/hours worked or the number of features delivered. However, not all new product features result in revenue growth, so evaluating the outcomes of IT outsourcing shifts to more calculable outcomes — like new subscriptions or product purchases.

AI-based routine automation

Top-performing companies in every industry have long since abolished manual deployments. Modern DevOps tools and Big Data analytics models allow automating the processes of routine deployments, greatly increasing the reliability and cost-efficiency of infrastructure operations and shortening time-to-market for software development.

Migration from legacy systems to the cloud

Many businesses cling to their legacy systems, the dedicated server clusters they built over the years and decades. It is understandable, as a significant investment of time, money and effort went to building these systems. In some cases, however, these systems are awfully outdated and cannot support continuous business growth reliably.

Transition to the cloud is one of the main IT infrastructure outsourcing trends this year, as businesses of all kinds choose cloud platforms as their next destination to use the cloud infrastructure benefits — scalability, high-availability, security, and transparency. Many businesses were withholding on their cloud transition due to cloud leaks, but since 80% of Fortune 500 companies are with Microsoft Azure cloud and the US DoD and CIA host their data with AWS — the great cloud migration has finally begun!

The reduced importance of cost savings

Reducing CAPEX and OPEX was the primary reason behind IT outsourcing from the start. With time, though, the businesses come to a realization that partnership with outsourcing IT companies gives them much more than budgets cuts. When working with an IT outsourcing company, a business instantly gains access to a pool of highly-skilled talents.

Their teams are experienced with all kinds of issues a project can face and usually have ready solutions for these in place. The main benefit, however, is that these teams can onboard and accomplish the project quickly, so you don’t have to pay for lengthy recruitment and the expenses stop once the project is ready.

Eastern Europe becomes a #1 IT outsourcing destination

Lots of business rating companies and technology consultancy agencies like Gartner, Forrester, Forbes, Upwork, Clutch, and others continuously name Eastern Europe as #1 IT outsourcing destination and give various accolades to companies from Eastern Europe and Ukraine, in particular.

When compared to other IT outsourcing destinations worldwide, this region provides the benefits of cultural compatibility, overlapping time zones with the EU and comfortable schedule with the US. Many businesses worldwide will discover the convenience of working with IT outsourcing companies from Eastern Europe in 2019.

Spreading workloads to multiple teams

Going for IT outsourcing is a tough decision on its own. Splitting the workloads to different teams is even a harder choice, yet it is the right choice to make. Why so? Because a Jack-of-all-trades cannot be an expert in anything, not to mention more people get more done at the same time. Thus said, it’s better to hire 2 good talents than 1 great one. This can be done by either working with separate IT outsourcing companies or with 1 bigger Managed Services Provider able to provide the full range of IT outsourcing services your need.

Conclusions on IT outsourcing trends of 2019

Therefore, 2019 is the best time to move your business to the cloud. Multiple IT outsourcing trends emerged and provide huge incentives to begin using them to your advantage. Should you want to use them — there are many IT outsourcing companies ready to help you!