Information Technology Outsourcing to Show Promising Results in the Near Future!

Published Date : 2019-02-07
Outsourcing is a market place consisting of numerous numbers of providers dealing with different products and services. Some of the business processes that are outsourced are payroll, benefits, staffing and ITO. Frequently outsourced IT services include application development, web development, technical support, database management and telecommunications among others. 

Information technology subcontracts the IT functions to a third-party vendor of an organization, effectively building high-performance IT organization. It is benefitted by external service providers which deliver IT¬-enabled business process, infrastructure solutions and application services for business outcomes. It includes services such as utility services, cloud-enabled outsourcing and software as a service (SaaS), enabling clients to implement right source strategies, vision.
Outsourcing acts as an important aspect of an organization with its emerging service delivery model and escalating market innovations such as cognitive technologies, robotics that improves a company’s capabilities. This is attributed to companies capturing new values and develop advanced innovative technologies. Outsourcing also offers enterprises to fast-track time, minimize costs, gain advantage of external enterprises and intellectual properties.

Information technology assures to make business more safe, efficient and productive. Increasing demand for outsourcing among SMEs towards business-centric and worker-centric approach is expected to drive the market growth. Effectively deployed outsourcing services can reduce cost and improve agility and service levels. Currently, many organizations contract outsourcing service provides to tackle different business process and many others outsource entire functions include payroll, HR functions, customer service activities such as call center, supply chain and logistics.

Trends Positively Affecting IT Outsourcing ServicesIncrease in integration of application outsourcing is expected to be one of the major trends drive the market growth. Companies and organizations are mostly outsourcing its IT application services to outsourcing providers to deal with competition in the market. Additionally, the requirement to optimize business processes is another factor expected to boost the market growth. Furthermore, accelerate time, cost reduction, capacity optimization along with enhancement in profit can be attained by IT outsourcing services.

Growing digital transformation and rise in adoption of software-defined infrastructure are projected to influence the market growth in the near future.

Security Risks of Major Concern in IT Outsourcing
Factors that are expected to restraint the IT outsourcing market are data privacy and security risks. In IT outsourcing, security risks and data privacy especially in cloud-based services affects the market growth. Online data protection such as online fraud and data security is one of the major challenging tasks for cloud security management. However, emerging technological advancements that require professional assistance is likely to promote IT outsourcing market positively in the near future

North America followed by the Asia Pacific to drive the IT outsourcing market

Some of the major players operating in IT outsourcing service market are Accenture LLP (U.S.), International Business Machines Corporation (U.S), Infosys (India), Wipro Limited (India), Cognizant (U.S.), Cisco Systems, Inc. (U.S.), BMC Software, Inc. (U.S.), and Tata Consultancy Services Limited (India) among others. 

This is attributed to driving the IT Outsourcing market in North America and the Asia Pacific owing to the presence of major players in the region. Moreover, early adoption of innovative technologies, advancements in digital technologies and organization’s increasing focus on digitalization is likely to drive the IT outsourcing market. Increasing government initiatives and developments in IT sector contributes to impact the growth of IT outsourcing market. 

For instance, Indian government Ministry Of Commerce and Industry venture capital investments in IT & ITeS sector reached USD 7.6 million in April to December 2017. Additionally, Indian government identified information technology as one of the champion service sectors for which action plan are being developed and on top of that Indian government set USD 745.82 million fund to realize the potential of these champion service sector.

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