In recent years, the outsourcing of IT operations and processes by companies and/or organizations has increased. Although it is something that was already being warned in the technological field, the pandemic triggered demand: an IDC report indicates that 60% of companies in the world have increased their use of outsourcing services during the pandemic to meet the demand for rapid changes in their operations and to be able to adapt to new regulations and security measures.
The truth is that Post pandemic, the trend continued to increase. According to a study by the consulting firm Deloitte, The global outsourcing services market is expected to reach $435.85 billion by 2025, representing significant growth from 2019.
The growth of outsourcing in recent years is undeniable. In Argentina, the high professional level and a marked desire for growth, together with one of the best university educations in the region – as demonstrated by the UBA, positioned 71st in the QS Ranking worldwide – make the country a hub strategic for the export of IT services.
According to a Deloitte study, The outsourcing market in Latin America has grown 6.3% annually, with IT services representing 53% of the total. This shows that companies are looking to optimize their operations, especially in technology, where the demand for qualified talent continues to increase.
The growth of outsourcing in Latin America responds to several interrelated factors, which include an accelerated adoption of new technologies, the lack of highly qualified professionals, high competition driven by the digital transformation of companies, and a profound change in production processes. I work towards remote and agile models, which have demonstrated notable efficiency and not all companies are willing to adopt.
On the other hand, the innovation gap between companies that invest in technology and those that do not, is increasingly widening and this implies rapid updates, with the need to work with software experts. For several years, and accentuated during the pandemic, many organizations have known the benefits of delegating processes and tools to those who have specialized knowledge, both in the main sectors of the economy and in government, where management continuity is complex due to changes. frequent.
The statement confirms the slogan that companies can (and must) address technological challenges, having outsourcing as a strategy aligned with their businesses, relying on those who have experience in technological innovation.
Now, in the era of digitalization and the transformation of organizations based on information technology, outsourcing offers clear benefits that have made it a strategy that benefits the entire organization.
It is valued by Operations Managers, thanks to the reduction of operating costs. By outsourcing functions, companies can concentrate resources on their core business while reducing expenses and contingencies in areas such as technical support, software development or IT project management.
To the above, it should be added that companies can scale their operations more quickly by having a strategic supplier that manages the additional load of projects and activities, generating greater agility and flexibility in the teams. Likewise, it avoids a problem to be solved by the areas. of Human Capital, since attracting specialized professionals with salaries aligned with internal salary bands becomes very difficult, almost impossible.
Globalization makes competition for professionals complex, and generally this is one of the added values of IT companies, which is knowing how to hire and manage experts from all over the world, without geographical limitations or diversity of knowledge.
Finally, it also allows companies to access the latest technologies and tools without incurring high investment costs, accelerating adoption in innovation and positively impacting the cost structure.
Outsourcing puts everyone in their place
A McKinsey study reveals that 83% of global companies are re-evaluating their outsourcing strategies to adapt to changing market demands.
Furthermore, a Deloitte report highlighted that 70% of organizations using outsourcing services are focusing on the adoption of emerging technologies, such as artificial intelligence (AI) and automation, to optimize processes. These trends improve efficiency and, in the same way, allow companies to focus on their value-added processes.
To this, we must add that cybersecurity has become a central concern, as companies outsource more sensitive data. A Gartner study warns that By 2025, 60% of organizations that do not integrate robust security practices into their outsourcing contracts will face increased risks of attacks.
In this context, technology companies, due to their specialty and business focus, manage to adopt and standardize new technologies in their processes much faster than those that have focuses in other markets, in which their business is core.
So, not all companies are software companies. To be a software company you have to be born a software company. Digital, innovation and technology are its essence; and programmers are the center of the business. These processes are neither simple nor quick: they are long-term and require full-time efforts.
Companies that do not have an IT outsourcing strategy may be diverting their business focus and/or being uncompetitive in the medium term, moving away from innovation applied to their markets and wasting the opportunities it offers in terms of development, agility. and operational efficiency.
Marketing Manager at Epidata.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
