Top 5 IT Outsourcing Trends for 2016

The Most Significant IT Outsourcing Trends for 2016

Over the years, the IT outsourcing environment has experienced dramatic changes, mostly for the purpose of being able to improve their services and exceed the expectations of their clients. In the upcoming years, it is expected that more IT outsourcing news will continue to shock the industry and will offer novel solutions to existing problems. While no one knows exactly what will happen, below, you can see some of the IT outsourcing trends that will most likely be apparent and will cause significant shifts in the operations of IT outsourcing companies.

#1: The Internet of Things
When you talk about the next big thing, as IT outsourcing news points out, one that should not be missed is the internet of things. Generally speaking, it refers to machine to machine communication, which is centred on the use of data gathering sensors. According to McKinsey, this will be an industry that is worth $11 trillion in 2025. Outsourced IT services will play a vital role in the development of advanced devices that can support the Internet of Things.

#2: Big Data and Analytics
The analysis of big data is no easy feat. Therefore, many rely on the services that can be provided by IT outsourcing companies because of cost-effectiveness and expertise. The price point of investing in big data analytics is just too high for some enterprises, which is why it is expected that many of them will resort into outsourcing in the coming years to take advantage of big data without being too resource-intensive.

#3: Price Pressure
It is safe to say that competition among IT outsourcing companies has been more intense in recent years and will continue to intensify in 2016. With many businesses interested in upgrading their key technologies, such as through cloud and analytics, it is expected that many providers of IT services will feel the pressure to lower their price in order to attract a favourable share of clients.

#4: Cloud Computing
According to Markets and Markets, before the end of 2015, cloud computing is an industry that will be worth as much as $121 billion. As one of the IT outsourcing trends in 2016, it is anticipated that cloud-based technologies will be more commonly optimised in various organisations as a way of competing and differentiating the services they are offering. Those who do not yet embrace the premise of cloud computing can be lagged behind competition, especially not only because of automation, but it is also cost efficient compared to manual processes.

#5: Digital Transformation
While the transformation of businesses into digital can bring forth a wealth of advantages, this can be unfavourable IT outsourcing news. As many enterprises continue to discover automated, scalable, and affordable solutions, outsourcing becomes less attractive. With such, the challenge in 2016 is for providers of outsourced IT services to rethink how they can create value and mitigate risks to continue being a viable option.


Conclusion

2016 will be a great and challenging year for IT outsourcing companies. The changing business environment and demands of the clients can present new challenges, which may be difficult to tackle in the absence of expert knowledge. With such, to make it easier for your enterprise to tackle these challenges, get in touch with us and we will let you know how we can help.