The industry of IT outsourcing is growing and evolving at lightning speed today. There are several major reasons causing this to happen. Just look at some data relevant to the growth of the IT outsourcing market over the last year:
- 32% of IT companies will indeed increase investments in IT outsourcing
- 48% of them, by the way, will be hiring more contractors rather than the usual full-time staff
How did the industry grow so big? Statistically speaking, outsourcing grants precise solutions to top-priority goals of any IT company. Goals like:
- Resource turnover is flexible, meaning expenses may be planned precisely with respect to what a project requires.
- Teams are already equipped with the required experts, thus eliminating the time and effort that is usually required for finding appropriate talent.
- And, of course, there are profitability & productivity.
These humble facts are, in fact, just glimpses of a bigger picture. Care to join for the full ride?
IT Outsourcing: True influence on the industry?
Let’s provide you with some statistics you would require to visualize and understand what exactly is going on in the IT outsourcing world. This should be a nice and meaningful beginning of our journey that will also open your eyes and mind to how big the industry really is. First of all: What is being outsourced?
What do top executives have to say about IT Outsourcing?
Surely there have been slight downfalls in IT outsourcing several times; however, in general, the industry has been experiencing colossal growth ever since the nineties. This effect is witnessed due the industries of software and hardware growing alongside increasing demand. Global spending on technology has risen by 6.2% in 2014, making it at $2.22 trillion worth.
The above-mentioned events are leading to even further growth and are improving the economies of entire countries, and are pushing cloud computing and mobility even further forward. It is likely that this $2.22 trillion industry will raise an extra 8.1-9.5% over 2015. Software has the lion’s share of total spending as its development costs $568 billion if compared to $416 billion for computing equipment and $373 billion for equipment used for communications, according to research conducted in 2014. And if software has the $568 billion share, you may be impressed that $288 billion from that went to outsourcing.
Resources are not an easily found thing. You may have a startup idea in London where there might not be just the right people you would require as a team, or there even might be ridiculously expensive experts charging twice as much just for being located in London. Such large amounts of resources are something few small businesses possess. And even if small businesses and startups are left aside, entire enterprises do feel the urge for cost reduction. After all, why pay more if the exact same results may be achieved with less?
Currently, almost half of all spending on software development goes for outsourcing, and given that the outsourcing industry is still evolving and increasing, there must be more than the ‘cheaper solution’ thing to IT outsourcing, right? This is the very kind of data used to define outsourcing.