Blog - Post

4 IT outsourcing trends that will be game-changers in 2019


As data analysis, automation, BI and digital transformation continue to sweep businesses globally it’s no surprise that IT outsourcing is predicted for significant growth in 2019. More and more companies are choosing to go to specialist providers to bridge the skills and technology gaps in their workplace. The need to fulfil niche business requirements and enhance department specific processes is paramount. And whilst reducing costs will always been a driving factor the ultimate focus for digital innovation is shifting towards adding value for the end customer. Here we’ll discover the top 4 outsourcing trends of 2019 and what that means for Managed Service Providers. 

Ability to innovate  

As people increasingly interact with ever smarter machines businesses come under more pressure to change, grow and innovate faster. These technologies will bring numerous benefits in the form of higher economic growth, improved corporate performance and new prosperity.  

 

Businesses will need reliable partnerships with IT outsourcing companies if they are to keep up with market demands and the expectations of their customers. According to a report by the National Outsourcing Organisation, 70% of buyers plan to increase their use of outsourcing with 35% planning to significantly.  

 

Skills shortage  

With the emergence of new technologies such as AI and BI there will be a distinct skills gap within the workplace. According to those surveyed the top jobs employers will be looking for include Digital Transformers, Transformation Architects and Automation Experts.  

 

Businesses attempting to secure IT professionals will find the recruitment process lengthy. This will lead to intense competition amongst employers making it even harder to reach sought after candidates. A report outlining the UK’s skills shortage found that 55% of those surveyed agreed that the skills shortage will be further exacerbated once Britain leaves the EU.    

 

IT Managed Service providers therefore need to be able to provide the resourcing to help manage specific customer projects. At Digicorp we have access to thousands of skilled personnel who specialise in a range of technology skills including cyber security, BI and data management and software development.   

 

4 trends for 2019  

 

Focus on value to the customer  

One of the most obvious reasons companies choose managed service providers is cost efficiency. With fixed term billing and extra resource at a fraction of the cost of hiring in-house professionals, it’s a no brainer. However, whilst this remains a leading factor, 2019 is set to see customer centricity overtake cost. An opinion shared by both service providers and their customers who agree that effective collaboration will result in a better value end product.     

 

New contract model  

IT Managed service providers are moving towards more value-driven contract models. This means that contracts will be centred around outcomes instead of output. A report by the National Outsourcing Association found that service providers believe contracts will become more flexible with shorter notice periods.   

 

At Digicorp we offer one off billing for project-based work. We project manage and provide the skilled resource without tying you into long term contracts. We’ll work collaboratively with your team, whilst taking on all the risk to ensure the project is completed to your satisfaction.   

 

Cloud technology 

Cloud based strategies are the basis for most IT projects and will continue to grow in 2019. A survey by Gartner predicts that more than $1 trillion of IT spending will be directly or indirectly impacted by the move to Cloud during the next 5 years.  

 

Cloud technology offers a range of benefits to a business with scalability and continuity being two of the most apparent advantages. For example, cloud storage has enabled workplaces to go paperless and store company documents virtually. Should there be an issue whereby employees can’t get into the office, documents can be accessed easily from any location. Other cloud solutions such as SD WAN (Software Defined Wide Area Networking) have given companies the ability to configure and deploy remote networks for multiple offices centrally via cloud software, enabling companies to expand easily.   

 

Furthermore, organisations embracing cloud solutions to enhance operational functions position themselves better for cost optimisation and increased competitiveness.

 

Automation  

Many businesses began their journey towards digital transformation and process transformation in 2018, however as we move into 2019 Robotic Process Automation (RPA) and Artificial Intelligence (AI) are set to become the top emerging technologies. The use of virtual agents and bots to streamline mundane tasks will become common place for most industries.  

 

As automation changes the nature of work, businesses will need to keep up with technology changes in order to stay competitive. According to a report produced by McKinsey Global Institute, one in three firms feel the lack of skills needed for automation will have a negative impact on their future financial performance.  

 

Managed Service Providers will need to develop their internal resource if they are to meet the needs of their customers. The need for data scientists, automation experts, operational strategists and big data analysts will be vital if they are to meet the customer's goals.  

 

How we can help  

Working alongside our long-term partners Digicorp provides IT Managed Services. We have the skills and expertise to manage entire projects, support your in-house IT team and provide a host of technology, automation and document management services that will streamline the running of your business, all at a competitive price.  

 

Get in touch at [email protected] or call 020 7232 5410.