IT outsourcing – why is it worth it?

Building your own internal IT structures is a solution which, although tempting, generates high costs. Getting the right IT specialists is very difficult, and the impact of AI, ML, and robotization on workplaces may cause the situation when the specialist employed today, tomorrow will not be necessary anymore.

What will you learn from the article?

• increasing popularity of IT outsourcing;
• Polan as a destination for IT outsourcing services;
• global trends in outsourcing IT services;
• what should you keep in mind when choosing an IT outsourcing partner?
  

Popularity of IT outsourcing

The pandemic clearly showed the importance of IT solutions, without which the losses caused by the crisis would be much more severe for the economy. It turns out that the challenges of the time of crisis best support those solutions that are provided in the service model. That is why IT outsourcing is gaining more and more popularity, giving access to IT solutions “on-demand” without the need to develop its infrastructure, allowing settlement in the Pay As You Go, model, i.e. depending on the actual use of resources.

That’s why it is such a good idea to use outsourcing. That is confirmed by the data provided by KPMG, according to which in the 2017-year, 727 IT outsourcing contracts worth USD 137.2 billion were signed worldwide. IT outsourcing is as often as not chosen by government institutions, and companies from sectors such as banking and finance, telecommunications, or automotive. As far as geography is concerned, EMEA is as often as not used by countries such as the UK, Spain, Denmark, the Netherlands or France.

Outsourcing to Poland

Poland is one of the increasingly popular outsourcing destinations. The position of this country on the map of outsourcing services is growing stronger and stronger. We have got to admit that the prices offered by the Polish IT market are no longer as low as they used to be a few years ago (although they still arouse the enthusiasm of foreign clients). However, the knowledge and skills of local specialists definitely distinguish Poland in the international arena.

Poland has some of the best programmers in the world. It is ranked 11th on the list of the world’s 50 most computerized nations, and 13th in Europe in terms of English language skills (thus far above the European average). With 37.97 million inhabitants and many world-renowned technical universities, we have access to a large pool of qualified IT talent. All this makes Poland the most popular outsourcing destination among all European countries due to ATKearney Global Services Location Index. Our market has already been recognized by companies such as Accenture, Credit Suisse, Goldman Sachs, Zurich Insurance, and Cathay Pacific Airways. But this is not the end of it. In the area of outsourcing, we surely haven’t said the last word yet, that’s why the years to come will be marked by the development of this area in Poland.
Since 2010 the value of Polish exports of IT services has increased over six times, which resulted in an increase in the role of the Polish IT services sector on the global market.

New technologies allow companies to move in different time zones, and thanks to the high competence of our IT specialists, Poland is recognized as a reliable IT partner in creating technological solutions whose value is increasingly appreciated on the markets of Western Europe and America.

Global trends in IT outsourcing

Technology and business are pushing each other. Technology changes determine changes in business, changing business needs determine the direction of technology development. The co-existence of technology and business is inseparable and, globally, we can see clear trends existing in the area of IT outsourcing.
The value added by the IT Partner to the client’s business is increasingly appreciated. The price factor for the quality of services and relationships created within the framework of cooperation plays less and less of a role in the choice of the client.

Business more and more often diversifies the portfolio of IT service providers, depending on the specificity of the project and the provider’s specialization, looking for the best combination of forces and competences to support the building of its competitive advantage. New business models are emerging, in which outsourcing partners become co-responsible for project implementation and their effectiveness; and contracts specifying cooperation within IT solutions are increasingly based on measurable cooperation results.
Process automation, i.e. virtual support from robots and artificial intelligence, is becoming increasingly important. It is expected that robots will take over some of the IT tasks. The development of cloud solutions and services is also quite a clear trend – the IT sector will experience a rapid increase in the number of projects related to storage and security.

Before you choose an IT partner…

IT outsourcing is a proven way to increase productivity and build a competitive advantage. Choosing an IT partner requires knowledge, time and careful thinking. All this to find the “perfect fit”. Where to start? What should you remember?
For a good start:

• define your needs, challenges and goals,
• indicate expectations as to the experience, client portfolio and communication practices of the potential IT partner,
• specify as precisely as possible the details of the project and the scope of required competences.

The next step is to prepare a list of potential IT partners, their verification and meetings to deepen your knowledge of a potential IT partner.
The selection is preceded by an analysis, in which you will take into account not only hard data, but also the quality of the conducted talks and the level of understanding of your needs.

Outsourcing is undoubtedly a great way to quickly acquire qualified specialists and optimize IT spending. What determines its success and how to effectively transfer it to a new, higher level? Check what determines the effectiveness of cooperation in outsourcing.