Why Outsourcing is Need of the Decade? Facts & Statistics You Need To Know in 2020
Outsourcing Statistics 2020: Step on it! Outsourcing makes a beeline toward innovation. In our current day to day life, the use of outsourcing is accelerating even as it set itself at speed and radicalism itself to keep pace with changing to various technologies that enable business services which are based on outcomes.
The quest to drive business value through outsourcing was once focused on the cutting of the price and will keep on motivating but the results of Deloitte’s global outsourcing survey 2016 indicate that outsourcing is becoming for driving innovation into the enterprise that will drive you to a more likely vibrant pathway.
Outsourcing accelerates forward - Outsourcing Statistics 2020
Deloitte’s analysis of the global outsourcing survey 2016 indicates that the market for outsourced services will likely continue its adapting nature in great and fluent speed to meet and in many cases to anticipate the demands of the employees as well as the customers. On the other hand, the regulatory environment has changed magnificently for some industries since the 2014 survey, there is still significant strength in the outsourcing market.
These types of small but of huge use transformational requirements are facilitated by advancements in technology and the corresponding process can be done with shifts.
The value of these small techniques will likely be measured by how service providers help empower business growth through innovation with these small variants.
Deloitte’s analysis of this current year’s survey reveals key insights that will affect both customers and managed service providers along with looking forward to it as well as going forward.
Key survey findings
In reality, more than one-third (35 percent) of survey respondents say that they already measure the value of innovation in their outsourcing relationships along with their job careers, the user experience to increase their competitive advantage at a velocity they could not otherwise achieve by themselves.
Disruption is the technical term usually in the form of cloud-based services is just the start: we are on the verge of an entirely new model and cognitive process automation, the “internet of things,” and digital IT management and business purposes, and this will likely lead to ever-increasing uses of outsourcing and reveal it from time to time.
Outsourcing Statistics 2020 - Outsourcing is growing across sectors
It’s not surprising that outsourcing has grown significantly in mature business functions like IT, human resources, and finance (which still represent the highest opportunity for future growth in outsourcing).
That said, the results of the 2016/17 survey indicate that outsourcing is experiencing accelerated growth in other sectors, notably real estate, facilities management, and procurement.
The report cites the potentially transformative benefits that Managed Service Providers (MSPs) are able to offer in terms of automation, scalability, and operational flexibility. In short, outsourced IT is becoming a consideration not only for ‘tech-heavy’ companies but for any business looking to improve their systems and service delivery through digital platforms.
The reasons for outsourcing IT are changing
With 59% of respondents citing its potential for cost-saving as a motivation for outsourcing IT, it’s clear that the financial benefits are still top of mind. However, 57% responded that outsourcing IT-enabled them to focus more on core business functions, 47% said that it helped solve capacity issues, and 31% believe an outsourced IT partner improves service delivery.
This represents a fundamental shift in the way businesses are approaching outsourcing – not just as a means to cut costs, but as a real driver of business. If the trend is anything to go by, the cost-saving benefits of outsourcing IT departments are likely to be perceived as secondary in the years to come.
Outsourced IT is increasingly seen as an opportunity for innovation
As the cost-cutting benefits of outsourced IT step out of the spotlight, service providers are starting to position themselves more as innovation centers than simple IT partners. As such, the goal of an MSP is to become more about creating opportunities for improvement through innovative systems and service delivery. More than a third (35%) of survey respondents said they already evaluate potential MSP partnerships in terms of their ability to innovate, as this correlates in a very real sense to improved service delivery and, ultimately, higher Return on Investment (ROI).
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Outsourced IT is starting to mean much more than just a cloud service
According to the survey, the disruptive influence of cloud services is only the tip of the iceberg in terms of the outsourcing revolution. To quote Deloitte’s article accompanying the survey: “We are on the verge of an entirely new model of service delivery comprising robotic and cognitive process automation, the ‘internet of things’, and digital IT management. This intersection of traditional outsourcing and the innovation storm could amplify value for those organizations that can correctly harness it, and this will likely lead to ever-increasing uses of outsourcing, even as it reinvents itself.”
Organizations are embracing the latest technologies to improve outsourcing results
One of the most surprising statistics in the 2016/17 survey is that up to 70% of respondents are implementing or considering implementing robotic and cognitive process automation in order to achieve optimal results from their outsourcing partnerships. This could have profound implications for organizations that fail to consider the benefits of incorporating the latest technologies into their business models.
If you’re interested in the benefits of outsourcing IT in your business, take our free IT health check to see what partnering with an MSP could mean for you, or get in touch with us directly should you have any questions.
