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Everything you need to know about Deloitte’s 2016/17 Global Outsourcing Survey

by John Lane - Mar 27, 2017

IT outsourcing has been on the rise in recent years in many shapes and forms.

 

IT outsourcing has been on the rise in recent years in many shapes and forms. From simple cloud storage solutions, to entire platforms and infrastructures being deployed as a service, it’s safe to say that outsourcing—to some extent—has become the norm for businesses of any size. And, even though the chief driver of outsourced IT adoption has traditionally been cost reduction, it’s increasingly being seen as a vehicle for innovation in enterprise.

 

In this article, we’ll take a look at some key results of Deloitte’s 2016/17 Global Outsourcing Survey and explore what they mean for the future of business.

 

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 centres than simple IT partners. As such, the goal of an MSP is becoming 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).

 

 

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 organisations that can correctly harness it, and this will likely lead to ever increasing uses of outsourcing, even as it reinvents itself.”

 

 

Organisations 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 organisations 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.

 

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TAGS: it strategy, trends, digital transformation