Written by
Cody McLain
Outsourcing is not a new phenomenon, but it is ever involved in a state of evolution. From manufacturing jobs to white-collar services, using an outside provider for key parts of a business can save money and allow a company to grow. Business process outsourcing (BPO), which includes various back-office outsourcing services like human resources and accounting, has become especially popular. Yet, another type of outsourcing is growing so fast it may surpass BPO: information technology outsourcing, or ITO.
Why Is IT Outsourcing on the Rise?
No matter the size of a company, security and technology are at the top of their needs, which helps explain why IT outsourcing is expected to have an annual growth rate of about 6 percent through 2019. Outsourcing for startups is a vital market, and while some organizations can get by without a significant legal or finance team (BPO) for many years, they need their data to be protected and their technology to work properly from the start. IT outsourcing allows businesses to:
- Focus on Core Business. Having software and data systems that function properly will only become more important in the future. While it’s becoming easier for businesses to conduct their own accounting and payroll with DIY software, it’s more difficult to handle IT without help. In short: Unless a business outsources IT, it will start to eat up a lot of time they could be using to improve and market their product.
- Stay Up to Date on Security. Information technology is constantly changing. While other BPOs like HR and billing face minor evolution, IT professionals are always responding to new malware threats and implementing new software and hardware into their best practices. Because changes in IT outpace changes in other business practices, having support will become ever more important in the coming years.
- Save Cash. Much like customer support outsourcing serves as a cost-cutting measure, outsourcing IT can save a business lots of money. Given that IT is becoming simply indispensable, finding a way to have IT service at a reasonable price will become increasingly popular.
Major IT Outsource Providers
There are already some big names in information technology outsourcing. Cognizant, Accenture and IBM are among the most highly regarded, but other household name brands have also thrown their hat into the business of ITO. For instance, Dell and Infosys are also providing ITO for a variety of businesses.
ITO is trending up, and the momentum doesn’t seem to be slowing. On the contrary, businesses seeking outsourced services should move it to the top of their must-have list.
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