Companies nowadays increasingly rely on IT as a service (ITaaS) to create competitive advantages against their opponents. According to statista.com, the 2020 spending on IT services is expected to amount to 952 billion U.S. dollars worldwide. IT Services Delivery is changing every day to better accommodate the client’s request. Here is a glimpse into what the future for IT Outsourcing might look like.
In our previous blogs on the definition and models of Outsourcing, we have already discussed the two models usually applied to IT Services Delivery. These include Managed Services and Staff Augmentation. However, IT Services are never simple and straightforward as the requests from customers tend to be complex and constantly changing themselves. So, what are the trends in Outsourcing that can be expected in the coming future?
1. E2E: Outcome-oriented IT
IT is no longer back-office operations, nor should it be entirely separate from the general business. Instead, business is becoming more dependent on IT for cost reduction and efficiency improvement. Lately, IT and business have seen greater co-ordination to contribute to the shared objectives and values. In some cases, IT is becoming the forefront business, as can be seen in various IT services providers including CMC Global.
On the other hand, IT outsourcing companies need to consider End-to-End Delivery in everything they do and understand what failures would mean to the end-user. There should be an understanding that what matters to their clients, typically business enablement and improvement, is also what Outsourcing vendors should be striving for, not purely financial gains.
IT Service providers are realizing their role in the client’s business and starting to define what they do by their end values. By implementing this E2E mentality, IT Services Delivery can offer a better service to the business.
2. Speed: better IT less time
The exceeding rate of innovation means that more technologies are becoming outdated faster than ever before. Customers cannot afford to wait 18 months to get first feedback on a release, and another 18 for the actual launch. Businesses are expecting the minimum viable product to be delivered as soon as possible. Therefore, Outsourcing companies need to work fast and smart to produce new solutions.
First, IT vendors can adopt Agile Delivery across the enterprise, which allows teams to make simplified process decisions and iterative mode of delivery. Some tech providers are putting developers near, or even right next to the business. In addition, IT Services Delivery should plan and develop on an iterative with multiple releases to enhance and improve the product.
If executed well, the overall result includes cost and rework cycle reduction and improvement in customer satisfaction.
3. Intelligent integration
IT Services providers are looking for ways to capitalize on the increasingly large quantities of data that they manage on behalf of the business. By integrating these systems and data, and applying predictive analytics, delivery units can contextualize and customize products and services intelligently to maximize the business value delivered.
Intelligent integration removes the barriers to information exchange between back-office systems, and enables consistency across all channels. This helps IT Services Delivery to handle a larger volume of data and tailor their work to better satisfy different customers simultaneously.
4. Collaboration among Vendors
New IT Delivery models have changed how companies find IT solutions for their businesses from third-party outsourcing suppliers. CIO’s and Vendor Managers will increasingly favor on-demand deals over long-term, fixed-scope contracts in order to protect their commercial interests. Clients are leaning toward a plug-and-play ecosystem, managing several IT services providers at a time.
In the future, we can expect all strategic Outsourcing partners of one organization to work together, demonstrating a culture of collaboration with a focus on delivering the best business outcomes and enhancing functionality through innovation. They might even reduce or repair each other’s mistakes.
With our 4-C Core Values: Creativity, C-speed, Commitment and Customer Centricity, CMC Global is proud to be the leading company in Vietnam for IT Outsourcing with two consecutive Sao Khue Awards. We have strong confidence that CMC Global will ride these upcoming trends in IT Services Delivery with technology breakthroughs, thereby providing domestic and international customers the best technology solutions.
Download our free e-book on IT Outsourcing in Vietnam here.