IT Outsourcing Services: Project Outsourcing vs. Staff Augmentation in 2022
In 2022, the way companies will get their IT projects done will change drastically from today’s ways.
Two major approaches will dominate the industry, each with unique benefits and drawbacks depending on the company’s goals and priorities.
The two approaches are project outsourcing and staff augmentation, both of which will be outlined below so you can better evaluate your options.
IT outsourcing services are the future
While offshore IT outsourcing services have gained prominence due to their cost effectiveness, offshoring has not completely proven its worth yet as many businesses are still sceptical about trusting an overseas vendor for sensitive projects.
An increasing number of businesses have been reported considering onshore staff augmentation and project outsourcing to bridge the gap between cost and quality associated with offshore software development and IT services. The market trend is expected to continue through 2022.
It is predicted that the industry will grow by $3 Billion by 2022
Worldwide IT outsourcing services revenue will increase from $145 billion in 2016 to more than $148 billion by 2020, representing a compound annual growth rate (CAGR) of 0.4%. It is predicted that it will exceed $153 billion by 2022, for a CAGR of 1.1% during 2017-2022 and represent 3% of global revenue by 2022.
This industry provides IT outsourcing services such as application development & maintenance, BPO, hardware/software procurement & installation, and infrastructure management & support. This industry does not include software publishing or internet access providers (i.e., ISPs).
The US represents almost half of all IT service revenues worldwide with an estimated market share of 48%, followed by Western Europe with 22% and Asia Pacific with 19%. The Asia Pacific region is expected to grow at a faster pace due to increasing penetration of IT among SMEs across emerging economies such as India and China.
The North American region has been experiencing sluggish demand due to slow economic recovery in developed economies coupled with increased spending on cloud computing solutions offered by vendors such as Amazon Web Services Inc., Microsoft Corporation, IBM Corporation etc.
Benefits of outsourcing your business technology projects include
cost savings, process improvement, and easier resource acquisition (vs. hiring your own IT team).
However, deciding to outsource can feel like jumping off a cliff into choppy waters with only a toe-dip of knowledge about how outsourcing works, who you should use and when.
This brief guide will explore IT outsourcing services for business technology projects including project outsourcing and staff augmentation .
Risks/challenges to outsourcing technology projects include
There’s always a chance that outsourcing technology projects doesn’t get your business exactly what it needs, but you’re also missing out on access to internal employees who are uniquely trained in tasks like coding and development, so choosing an IT outsourcing services provider with proven expertise can help you bridge any gaps.