Outsourcing in IT and software industry is more than a decade old. However, the practice has evolved considerably in the past few years, offering better business opportunities at a fraction of cost. Here Five Key Ways IT Outsourcing has Evolved.
A number of factors have contributed to this change, including:
- State of the art infrastructure, better tools and communication channels to promote global work sharing
- Modifications in work processes and execution of tasks keeping in mind the early failures
- The availability of better workforce with advance skills in technical, consulting and project management
- Access to a wider range of geographies with unique cultures and technical specifications
- Innovation leading to many new technologies that can be leveraged to meet customer demands and increase business value
With all these factors, outsourcing in IT industry has evolved in many ways. Presenting the most prominent ones here:
- Reducing barriers to communication and collaboration
Initially, communication was a major problem for geographically separated team working collaborative on IT projects. Sharing information and documents was very difficult and extremely pricy.
Now the availability of free instant messaging, video calls and conferencing solutions as well as collaboration tools like enterprise social networks make business a lot easier. Outsourced teams can collaborate and share details in real-time.
- Innovative technologies
The proliferation of internet access and explosion of new technologies like mobile technology, cloud computing and social networking have transformed IT outsourcing. Consequently, both IT companies and product-based organizations are in search for reliable tools to integrate the latest technologies to their business. Hence, they are exploring options globally for resources with skills and experience in both existing and new technologies.
Also read : IT Outsourcing: The Reasons, Risks and Rewards
- Better work processes
Companies that succeed in attracting outsourcing partners pay considerable attention to continually enhancing work processes to reinforce the outsourcing relationship. In this process, they pay attention to strong communication, quality reviews and better productivity. They have also become sophisticated in their initial engagement process. They also have a well-defined strategy for work distribution for successful completion.
- Shift in focus from cheap to productive
While the initial years of outsourcing was based on the promises of cost savings and huge discounts, now businesses pay attention to better productivity. This is because cheaper deals caused poor productivity and higher communication overheads.
Now both clients and outsourcing firms have learn from failures and prefer staffing models for fixed price deliverables.
Clients have realized that cost is not the only aspect to look out for, but quality of services stands on top.
- Proliferation of outcome based engagements
Outsourcing now demands direct customer interaction, so businesses are not only paying attention to the communication technology but also measurable results. Businesses prefer outcome based models of outsourcing partnership and measure business value through key aspects like revenue generation, resource optimization and market penetration.
Outsourcing has undergone a huge transformation which has actually helped businesses to grow and succeed simultaneously both in terms of productivity and capitals.