The emergence of outsourcing in the Global IT Industry

BJIT
5 min readMar 14, 2022

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Salute to Disruptive Outsourcing, but did you know why “Outsourcing failure stories” is a famous Google keyword? Leading organizations show that disruptive outsourcing solutions through managed IT services — led by cloud and automation — are transforming traditional outsourcing methodologies.

Photo by Israel Andrade on Unsplash

Is Traditional Outsourcing Actually Dead?

In the past, organizations typically used to outsource projects to improve IT operations through cost reduction and performance improvement.

Today, the focus has shifted from traditional outsourcing to upfront transformation and automation.

Disruptive outsourcing solutions are enabling competitive advantage by accelerating changes that have the audacity and skill to leap over the technology chasm; for them, outsourcing can pioneer, as well as to be more agile and effective.

Organizations are recognizing that disruptive solutions can revolutionize the way they do business, and that “buying” capabilities in the marketplace is generally faster and more scalable than developing capabilities inside the organization.

Emerging solutions are incorporating cloud and automation to empower organizations to work smarter, scale faster, reach new markets, increase productivity and, ultimately, to gain competitive advantage. Organizations are finding that delivering competitive advantage through disruptive outsourcing solutions is anything but simple; effort and expertise are needed to address security and cyber risks, changing regulations, organizational resistance, skill gaps, and to help flatten fragmented processes.

In this new world, place your bets on the brave and the good, and against the fearful and complacent traditional outsourcing software development projects.

Technologies Driving Disruptive IT Outsourcing Services Company

Disruptive outsourcing arrangements are challenging traditional IT outsourcing services company strategies and driving competitive advantage incorporating emerging technologies to drive innovation, enhanced user experience, and improved performance through:

- Cloud computing: It is a model for enabling convenient, on-demand access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned with minimal effort or interaction.

- Robotic Process Automation (RPA): A software that performs repetitive rule-based tasks to improve efficiency, quality, and accuracy of process outcomes.

- Cognitive automation: It adds additional capabilities to RPA, including learning, judgment, and “reading” of unstructured text (e.g., handwriting, text, photographs, etc.).

A Challenging Relationship

Outsourcing has the potential to bring in a significant amount of savings along with the investment and the sheer potential for setting risks upon outsourcing ventures. Without adequate advice, planning and management, companies hit obstacles, get entangled in complexities or simply get it wrong.

Organization will certainly fail to figure out the benefits of outsourcing unless they stick rigorously to the following steps:

• Adequately arrange and oversee outsourcing process

• Set up a compelling administration process

• Oversee the potential commercial and legitimate risk

• Get adequate information and understanding in outsourcing

• Keep up control and firmly connect activities to the target

How to ensure success and avoid pitfalls?

In an interview with substantial experience in the field of enterprise applications, such as: Wipro, HCL, TCS, Mahindra Satyam and L & T Infotech showed several key activities that are recommended by all the interviewed vendors to be carried out before entering into an outsourcing agreement which includes:

• Commitment and support from senior management

• Defined strategy including goals and objectives

• Defined areas that set the scope and limitations for outsourcing- Core (business critical) & Non-Core (non-business critical)

• KPI’s should be established both for transition and ready state

An IT outsourcing services company ought to deploy a Risk Management process for early identification issues. Sensitive, mission-centric transitions are benefitted from the system that has inbuilt stage/tollgate mechanisms, which also provide for rollback alternatives.

This is a viable risk management strategy.

Key Factors of Disruptive Optimization

IT outsourcing services are empowering competitive advantage — Whereas cost optimization is still a vital measure for outsourcing, it is not at the top of the list, since disruptive outsourcing when executed well, can provide competitive advantage by changing the way organizations work, and making them more dexterous, effective, and viable.

Real challenges — With adopting disruptive solutions comes Information relocation, security necessities, and application optimization/change are just a couple of cases of challenges related to cloud adoption. Organizational resistance, highly fragmented processes, and administrative restrictions are common challenges related to RPA selection.

Disruptive Solutions Transforming Outsourcing

Cloud makes capability, but cost counts.

Cloud is quickly disrupting the outsourcing landscape. It is empowering competitive advantage by innovations at the touch of a button. This can make a difference in organizations being more agile, quickly extending their offerings, entering modern markets, and changing their outsourcing IT operations.

The primary reasons for adopting cloud are: it acts as a catalyst for IT development, improves time to advertise, forward performance, and quick scalability.

This presents an opportunity for cloud partners to extend their offerings and their conversations beyond the innovation stack to construct end-to-end products or services.

All functions are onboard with RPA — and clients are generally satisfied.

The starting point for most organizations is robotization. For instance, organizations encourage improving their automated forms with cognitive capabilities to empower analysis of unstructured information, content, voice, and even handwriting. Organizations are using human bots to reply to candidate applications, give real-time status and back them all through the hiring process.

The primary reasons for adapting RPA are: Performance progress, Improved speed/time to market, Reduced errors, Streamline existing processes, Access to new technology

Effectively managing cyber risk while adopting disruptive outsourcing solutions

Organizations clearly recognize the significance of active monitoring of cyber risk, and they are increasingly being proactive in administration.

An Example of a Successful Company that Leverage Dedicated Teams

In today’s pressured and complicated market, companies are seeking out for more comprehensive advice regarding outsourcing: which IT outsourcing company covers the complete life cycle of outsourcing from strategy enhancement to optimizing, and which IT Outsourcing services company marries business development with IT operation with specialization and industry dominance?

Calling upon an exceptional breadth of abilities, BJIT conveys through a coordinating approach that empowers them to supply the complete array of administrations — from business case demonstrating the skill to prompting on risk and administrative suggestions with lower cost and flexibility with proven models that allows delivering outsourcing services contracts successfully and consistently for over 20 years.

Final Thoughts

It ought to be in your best interest to discover innovative ways to bring your item into the showcase. They have to be fast yet cost-effective. Outsourcing has been demonstrated to be profitable, although there are occasions where an IT outsourcing company might fall flat; but with the assistance of an IT outsourcing consulting company, your thought gets interpreted into an advertised rethinking item.

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BJIT
BJIT

Written by BJIT

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