Thursday, May 14, 2020

When Your Own Team Fails: Here’s What to Do

Virtual Electronics’ Review of IT-Outsourcing Trends Beyond 2020

Today, businesses in the IT sector turn to the services of outsourcing companies for a bunch of reasons.

Some are aiming to save money, striving to become more flexible in the world market that had sagged at the beginning of 2020, or just need to gain additional experience in a certain field.

IT Market Trends

However, according to the Global Sourcing Association (GSA) report, in 2020 the trends in the IT outsourcing market are changing dramatically and such changes will be especially noticeable by 2021.

Previously, most companies perceived outsourcing exclusively as a tool to reduce costs.

In 2020, this point of view is losing popularity as we enter a new decade,  more and more often developers, system administrators or other members of the client’s team cannot deal with emerging technologies and, as a consequence, fail to solve the rising problems.

Unless you provide enough learning opportunities and regularly send your staff for training, your best employees will remain at least one step behind the latest IT trends. So how can your team deal with something they don’t quite understand?

Therefore, IT outsourcing clients today are starting to focus on the effectiveness of the team, rather than on cost savings.

Besides, more frequently the client looks for an outsourcing company that will not be just an executor, but become a professional partner interested in the result of this cooperation and not so much in the process itself. Such a partner is willing to share both profit and loss with the client.

Overall, despite various reasons for resorting to outsourcing, most businesses agree that improving the quality of service and finding new business opportunities, using an outsourcing partner attract them much more than just an opportunity to cut their monthly expenses and save money.

How to Change a Downward Trend?

At the same time, in recent years, customer satisfaction score has been at an all-time low. Customers believe that most IT outsourcing service providers today do not have sufficient flexibility and innovation.

We at Virtual Electronics believe that outsourcing service providers should take into account such moods among customers and try to carefully evaluate the level of customer focus of their company.

This would help outsourcing companies increase their competitiveness, get additional contracts and, most importantly, avoid losing their business in today’s market.

Only leaders in their field and those businesses who do not resist accepting new rules of the game will prosper as they can rebuild and adapt quickly to the ever changing business environment.

“Rebuild” in this case will mean that your company accepting the fact that today competently built partnerships between outsource providers and their clients are no less important than the focus of your business on innovation.

The Solution

However, there is good news for outsourcing companies. Presently, we can already assume that the field of IT outsourcing will grow rapidly along with the number of companies seeking to delegate more tasks to third-party performers.

This is in order to limit the number of employees in the office (which will obviously become one global trend in 2020-2021).

Another notable trend in outsourcing in 2020-2021 is that narrow IT specialists are becoming an ever-growing shortage.

This leads to increased demand for IT outsourcing, where even a very large company will turn to outsourcing in order to attract such rare personnel to solve the problems of a particular client or project.

Among such specialists, for example, digital security managers, automation specialists, design thinking specialists, and so on, can be distinguished.

Apart from that,, along with the active growth of projects in the field of AR/VR, the number of clients who are in search of specialists willing to work with such promising technologies and, most importantly, have enough expertise, is growing proportionally.

In addition, an important trend is the development of global competition among IT outsourcing companies.

Where Chinese and Indian companies shared the market 5 years ago, a huge number of impressive Eastern-European players from Ukraine, Belarus, Poland, Russia, and Romania had entered the present market.

To sum up

In modern business world, IT outsourcing service providers must adapt to the trends of the ever changing market, carefully researching the needs of customers who are determined to work with companies practicing a customer-oriented approach.

Such outsource providers offer the opportunity to transform the old form of their business relationships that looked like a “customer-executor” into a new “partner-partner” form.

This is where the provider of outsourcing IT services finds the courage to be proactive in sharing risks. Besides, a thoughtful intention to protect client’s private data is becoming increasingly important in the field of technological outsourcing.

The implementation of such strategies in all of your business processes, as well as keeping an eye on new trends in the field of outsourcing can become a reliable support and incentive for your company to develop over the next few years.

Virtual Electronics PTE LTD is a Singapore based company specializing in IT outsourcing, mobile application development, and hosting solutions (justvps.com).  One of the latest Virtual Electronics projects is the VEnterface intelligent platform aiming at providing Australian innovative entrepreneurs with digital entry to the Singaporean market.



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