Hiring managed service providers to deliver business projects is one of the hottest IT outsourcing trends in 2019. We will discuss why this is so beneficial for startups.
First of all, what is a Managed Services Provider? It is an IT outsourcing company that remotely manages the customer’s IT infrastructure and user-facing systems. This is usually done proactively and under a subscription model, or on a fixed-price model for short-term contracts. The main benefits of such a partnership are:
- Instant access to a pool of highly skilled talents to leverage their expertise to reach the business goals set
- Outsourcing the IT operations tasks to professionals to concentrate on core business tasks and grow your business
- Saving the budget, as IT outsourcing excludes the standby expenditure, as well as recruitment expenses
- Ensuring continuity of service and software product delivery
Thus said, there are certain IT infrastructure outsourcing trends that gain more traction in 2019.
Lower accent on cost reduction
IT outsourcing is not primarily about cost reduction. While saving money is essential, the main reason for contacting IT outsourcing companies is to gain instant access to top-notch talents. As Managed Services Providers engage in various projects, their staff has ample experience with solving all kinds of issues. Therefore, they can lend the expertise your project needs at once, not after a long recruiting and onboarding period.
Diversification of IT outsourcing providers
Putting all eggs in a single basket is very risky. Putting your trust in a single IT outsourcing cloud computing provider means a vendor lock-in. Besides, a single team cannot be an expert in everything (even if they claim so). A good team develops expertise in a couple of functions, instead of trying to cover all requests.
For example, IT Svit, one of the top 10 Managed Services Providers worldwide, specializes in providing DevOps services and building dedicated teams for full-stack web app development. We also have experience with blockchain development, serverless computing, and building Big Data analytics solutions.
However, we do not claim to be experts in mobile development, game development or Java development — as we are honest about our capabilities, and it would be better to address such requests to another IT outsourcing company.
The rise of Eastern Europe as a #1 IT outsourcing destination
While Eastern Asia has been a traditional destination for multiple outsourcing IT companies, the subpar quality of services delivered there has long since become a byword. Eastern Europe in general and Ukraine, in particular, are rapidly becoming the #1 IT outsourcing destination.
Innovative partnership models
Calculating the project efficiency based on output no longer works. It is similar to evaluating the progress of reaching the moon by climbing up the mountain: while there will be steady progress, the goal will never be achieved. Thus said, it is best to evaluate the IT outsourcing cloud computing project efficiency not by the number of hours spent or lines of code written, but by the number of product subscriptions or other calculable outcomes.
Outsourcing even more, outsourcing even core
The business is used to outsourcing customer support and IT operations like cloud infrastructure management, software development, etc. However, outsourcing core business functions (like finances) is almost never done and is considered a high-risk area. However, once the customers become sure their IT outsourcing partner is trustworthy, they will be able to benefit by establishing an even more close partnership. They will begin delegating some of their core business functions to further cut their expenses and increase their competitive edge.
Intelligent automation of routine tasks
From manual deployments to automated CI/CD pipelines, chatbots to ChatOps, from data intelligence to Big Data analytics — businesses worldwide continue to devote more and more effort to automating their workflows and using AI&ML to leverage their data to its limits. Ever-growing importance of automation is one of the main IT outsourcing trends of 2019, as the need for data analysts and DevOps automation engineers is growing steadily.
Cloud migration from legacy systems
Forrester has named 2018 “the year of enterprise DevOps” as nearly 50% of enterprises worldwide were either moving their legacy systems to the cloud and adopting DevOps culture or engaged in pilot projects before doing this. In 2019, most of these pilots should have been successfully completed, and the grand exodus from the legacy systems to the cloud should take place.
There are security concerns, one might say. However, the facts that AWS has long since been the main IT services provider for the USA DOD and CIA, and MS Azure hosts 80% of Fortune 500 enterprises — these facts speak for themselves. More and more businesses worldwide will look for expertise required to transition to the cloud from their legacy systems.
Final thoughts on IT outsourcing trends of 2019
Thus said, 2019 is going to be an intense year for IT outsourcing companies. The businesses will be massively moving to the cloud, discovering new markets for outsourcing the IT projects, diversify their partners and adopt new technologies. As one of the leaders of IT outsourcing market in Ukraine, IT Svit is able to meet and exceed almost any requirement. This is why startups and SMEs worldwide choose us as their reliable IT outsourcing partner.