3 Advantages of IT Outsourcing in large companies
Is your company considering an IT outsourcing strategy? We hope so because IT Outsourcing is a strategic solution. Nowadays, more and more companies are investing in this type of partnership to take advantage of some more sophisticated provider offerings, such as customized industry solutions and advances in digital technology. And yes, we are definitely talking about custom software development, artificial intelligence (AI), analytics, or machine learning.
To meet the growing digital challenges that are here to stay, and talent acquisition difficulties, companies must adapt how they operate. Only then will they be able to embrace flexibility and competitive advantage and, ultimately, achieve better and more sustainable results.
In this sense, IT Outsourcing could be a valuable resource as there are many important benefits to consider, such as:
Efficiency in recruitment and talent selection processes
Agility in recruitment and talent selection processes, as done with specialists, is a given fact. And that is even more important when discussing the areas of technology that tend to be the most difficult in accessing talent and skills. And there is no doubt that, by accessing these talents more easily, companies can boost growth with digital innovation.
Optimization and cost reduction
Reducing the development time of a project allows business leaders to achieve results faster (as it turns fixed costs into variables). A Deloitte study points out that 88% of companies use IT Outsourcing to reduce costs.
Increased flexibility and quality in process management
In departments or projects with cyclical demand, Outsourcing allows flexibility in managing teams with the addition or reduction of resources whenever necessary, ensuring a more aligned workflow and, consequently, a higher quality of delivery.
All these advantages may seem like an exaggeration, but they are not - or this market would not be growing at such a rapid pace. According to a ReportLinker study, the global IT Outsourcing market was valued at $526.6 billion in 2021 and is expected to reach $682.3 billion by 2027. These are very expressive numbers and hard to ignore. They give us a good picture of the market size in this sector and the way it goes day by day.
An IT Team from outside
But is this a big company-targeted service? Or rather SMB companies? At a time when corporate needs are similar, no matter the size, IT outsourcing is good for each and every company in the market. In fact, this is an effective process for small and medium-sized companies and mainly manages to respond to many of the problems faced in large companies - lack of organizational structure, difficulty in hiring qualified professionals – in a market where specialized talent is scarce –, and low management and retention of talent. Another report by Deloitte estimates that 50% of executives consider, precisely, the attraction and retention of talent as the main strategic challenges of an organization.
Nowadays, there are more and more companies that consider Outsourcing a good alternative if it involves the help of the right partners. Mckinsey tells us about a successful case study in the telecommunications industry, where only one Outsourcing partner was able to increase the automation and digitalization of all operations, as well as reduce operating costs.
And with this, we reinforce the initial point: implementing an IT Outsourcing strategy can transform your business, however, it will require time and dedication. It may require transforming your ecosystem, redefining your processes, and perhaps even reinventing yourself when it comes to business success, but we assure you - it will be worth it.
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