Outsourcing – A Push for Survival

As businesses settle into the working world in the time of COVID-19, many of them are also trying to figure out the new rules of business. According to the ‘2020 Global Managed Services Report’ report by a technology firm NTT, many firms are expected to outsource more work. In fact, based on a survey of 1,250 executives in 29 countries including India, the report said that 45% organizations will outsource more than insource in the next 18 months, with 57% citing security risks as a key challenge of managing IT in-house.

Other findings of this survey include:

• Reducing security risks is not only the biggest challenge faced by IT teams globally, it’s the top reason for service provider consideration. Information technology services remain the most widely outsourced activity, reported by 57% of respondents. But overall, 70% outsource one or more inherently strategic activities:

o 53% outsource production or delivery of core products or services.

o 33% outsource sales & marketing (including third party distribution channels).

o 32% outsource innovation/R&D.

• 48% of business leaders already acknowledge a need to optimize the workplace environment.

• Technical expertise is the number one driver for selection of a service provider, with cloud infrastructure and security leading the demands.

• Security was also rated the most important factor for supporting the business case for using a service provider.

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