Deloitte: 76% of IT Companies Use Outsourcing – Are You Being Left Behind?

Petras Butėnas

CEO

Topic: Managerial

Date: 10 Sep 2014

As the internet was the hit of the 1990s and the credit boom of the 1980s, outsourcing is the new growth driver for the 21st century. Deloitte’s Global Outsourcing Survey shows that organizations around the world have outsourced $480 billion worth services in 2012. Surveys show that outsourcing has penetrated most of the business and IT services and only the minority of companies has not tried outsourcing yet. Deloitte’s survey shows that most of the companies have tried and already benefited from outsourcing. Is your company aware of all the opportunities?

76% of IT companies use outsourcing, others plan to outsource in the future

According to Deloitte, 76% of IT companies use outsourcing and 76% of companies who use outsourcing were extremely satisfied or satisfied with it. Survey shows that the saving met or exceeded expectations in 78% of the cases. The growing interest in IT outsourcing is shown in  Deloitte’s 2014 Global Outsourcing and Insourcing Survey which reveals that 26% of respondents who do not outsource elements of their IT function, plan to outsource in the future. The IT companies commonly outsource routine elements of the software development life cycle, while strategic elements are retained in-house.

Outsourcing may look like not an attractive alternative, however there are benefits of outsourcing IT services. The reasons to choose this alternative differ and the most popular are the following: to reduce operating costs, to improve customer service and to gain competitive advantage. While surveying Microsoft Dynamics Partners, Simplanova has found that increasing operating capacity and having additional competences available were among the mentioned reasons for outsourcing.

Our Survey of Microsoft Dynamics Partners’ Experience of Outsourcing

Simplanova’s survey of Microsoft Dynamics Partners’ experience of outsourcing has shown that the most important requirements for a nearshore outsourcing partner were the following: quality, communication and a high rate of return-on-investment. Simplanova provides proven methods to address these concerns:

·      Dynamics NAV services quality concern is addressed by analyzing past project case studies and references, organizing meetings with the technical team and beginning with smaller development tasks rather than large projects.

·      Smooth communication is ensured by allocating a project manager for all projects who is responsible for meetings prior and during the project, weekly project progress updates (or more often if required) and answering any project related questions/concerns.

·     A desired return-on-investment rate is ensured by increasing the efficiency of Dynamics NAV development processes with our professionals and through automated development tools, standardized techniques. Simplanova provides a return-on-investment tool which shows the rate of ROI while comparing to doing same services internally.

Three-quarters of IT companies use service outsourcing and get benefits from their outsourcing partners. Is your company proud of and exceed your clients‘ expectations in the areas of services quality and communication, lower cost or technological innovations? The surveys above showed that other IT companies (including Dynamics NAV development companies) use outsourcing to improve their business activities and benefit from cost reduction, customer service improvement and having additional competences. Are you being left behind?

Simplanova helps to cut overtime costs and increase the efficiency of Microsoft Dynamics NAV development services. Learn more about our Dynamics NAV development services. To get a free Dynamics NAV development project assessment email us at info@simplanova.com