Information Technology Outsourcing: Good or Bad?
September 18, 2019
One of the early twentieth century woes was outsourcing IT jobs. These jobs were sent to India, China, and other places in Asia. The outsourcing was a topic for comedy sketch shows and a political slogan for right and left wingers. There is more to IT outsourcing than we think, especially in the United Kingdom. Computer Weekly shares a new side about IT sourcing in the article, “IT Outsourcing Is Increasing, But Not As We Know It.” There is nothing new bout the growing demand for IT workers, but service providers have changed what they offer their customers.
The outsourcing statistics are worrying for the United Kingdom economy, because Whitelane Research and PA Consulting discovered that 71% of UK organizations plan to outsource the same amount or more of their services in 2019, according to a survey of 760 IT deals. The same study showed that the same organizations are going to insource less at 16%, compared to 22% in 2018. The main reasons for the outsourcing is how traditional service providers are being changed to meet customer demands and businesses streamline operations, such as automation, AI, and mobile apps.
An IT expert said:
“ ‘Technology-driven challenger organizations are transforming the way services are delivered and consumed across sectors,’ said Manish Khandelwal, IT transformation expert at PA Consulting.”
The traditional service providers might be changing, but they, along with smaller players, are increasing their IT spending. The same IT expert observed:
“’Technology investments are growing, presenting significant opportunities for established service providers and new entrants with differentiated offerings,’ said Khandelwal. ‘Service providers that are able to transition from traditional delivery and commercial models without compromising the service quality are looking at an exciting future ahead.’”
Organizations want to meet their customers’ demands, while achieving their business goals at the same time. This requires changing the traditional service structure, but also how companies are established and how they spend their money. It does not look good for growing local economies, but it could offer individuals the ability to start businesses when they might never had the chance. It is tough balance to keep, but no one knows what the results will be.
Whitney Grace, September 18, 2019
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