Outsourcing IT in 2020: Why Focus is Shifting to Value Over Cost

Posted on: January 6, 2020
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Outsourcing IT services is not a new concept for the new decade. For technologically advanced cities, such as Sydney, New York, and Paris, the demand for IT outsourcing continues to grow as more companies are attempting to focus on operations and maximize the IT expertise found outside the organization instead of organically growing from within.

The areas of organizations requiring outsourced IT services are becoming more fluid. From HR database management, to mobile app development for a marketing campaign, to storage and archiving for finance and accounting, the demand continues to create new service-oriented, technology-driven industries. While savings and efficiency are still the major drivers of outsourcing, this is slowly becoming second priority as more companies shift to finding lasting value when engaging outsourced partners.

  1. Long term partnerships are preferred

With many organizations ending contracts with old outsourcing partners, a benchmark for good partnerships has been built as reference (either from good existing partners, or IT providers that have left clients wanting more). Companies are then ready to stay with their existing IT partners if the partnerships prove to be valuable. Whereas those companies looking for new partners mean they are more likely seeking long-term partnerships rather than short-term engagements.

  1. Companies are more willing to pay for customer service

Companies continue to value the human element as part of good value provided by outsourced IT services. No matter how on-point the technical expertise of a company may be, it will not be preferred by client companies without good account managers or customer service representatives to provide technical support. Clients will prefer IT service providers that truly understand and provide good customer service – and they will be willing to pay a premium for it.

  1. Several providers may be consulted for solutions

Some clients are looking at engaging several providers to better understand available solutions and to seek the most effective ones. This means service providers should be more open for collaboration instead of engaging in head-on competition. At the end of the day, it is the client’s decision to engage as many service providers as needed. A service provider is seen as more valuable if it can collaborate with other engaged providers and provide a more holistic solution for the client, regardless of cost.

Outsourcing is a strategic step that companies will continue to take in the coming years. It is important to, then, build good partnerships with outsourced IT service providers that will work best to achieve the organization’s goals for 2020 and beyond.

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