Between 2023 and 2027, the business process outsourcing market is set to increase by 6.8%. This is sure to be for several reasons, but the underlying fact remains for all situations; outsourcing allows teams to be strengthened affordably.
At least one-third of UK business leaders are looking to outsource some operations, with IT being a popular department to invest in with third-party support. The future of IT outsourcing looks promising and represents the changing digital landscapes that almost all industries face as we steam into 2023.
As an experienced IT consultancy agency at Creative Networks, we like to keep our fingers on the pulse regarding the future of IT outsourcing. In this blog, we will explore what trends will likely influence IT outsourcing and take a deep dive into the future of this essential business operation.
What Is IT Outsourcing?
Outsourced companies are not new, but how teams collaborate in the modern working world has come a long way in recent years. IT outsourcing allows companies to use third-party companies, commonly IT agencies, to carry out both software and hardware tasks. How the services are used can differ between organisations, but the core management of IT networks remains for all contracts.
Some businesses may choose to bring in help with a few aspects of their IT networks, whereas others will opt for full-service management IT support, which is a common option as of 2023.
When considering what IT support means, it is vital to consider the complexities that contemporary risks pose, such as cyber security threats and software malfunctions. Outsourcing all or some of the IT tasks a business must fulfil means that even the smallest of companies can operate professionally within the highly competitive digital world.
Our outsourced IT services cover security compliance services (ISO-27001, ISO-9001, and ISO-22301), cyber security strategy and implementation, back-up, cloud, disaster recovery, server management, IT support, and telecommunications management. This is representative of the areas of support most commonly covered by outsourced IT services.
What Are the Benefits of It Outsourcing?
Choosing to bring in outsourced IT talent means that a company can access experts within many areas of technology for an affordable price. With the average salary of a UK-based IT Manager coming in at £53,934 in 2023, creating an in-house team can prove to be a significant financial investment.
As with any area of specialism, the more experienced the professional, the higher the price tag they can command. Accessing top developers, engineers, and security managers is not an option for many companies. Outsourcing IT services to an agency with an established team of people at the top of their field allows even the smallest of businesses to bring in this specialist talent.
Outsourced IT services also allow companies to operate much more strategically. This is because the operational and planning elements intrinsic to having a successful IT infrastructure are being met simultaneously.
Productivity and efficiency improvements can also be experienced, which helps businesses meet the ever-changing demands of their employees and customers. Timesaving and more tactical use of budgets and resources mean that every element of the technical landscape of a business is being managed effectively.
This provides a framework that facilitates uninterrupted working that is also resilient to modern-day business vulnerabilities.
Security and compliance also benefit from a more specialist management approach. 82% of senior management say that cyber security is a high priority within their company. IT services that are outsourced can work with a company on every stage of their cyber security, including obtaining security compliance certifications, carrying out security risk assessments, providing vital user awareness training, and creating disaster recovery processes that help a company recovery should the worst happen.
Many companies outsource this function as more human resources are typically needed to stay on top of this constantly changing business threat. From being able to invest in 24/7 management to having a team ready to action disaster recovery plans, for many companies, this is a vital aspect of their outsourcing strategies.
Outsourcing IT tasks to experts can also help drive digital transformation for companies. This is one of the main reasons that outsourced IT support has become popular in recent years and reflects the technological priorities that businesses must meet.
The UK digital market sector is worth more than $24 billion and continues to grow exponentially. When used in this area, IT agencies can help plan for change, implement bespoke operating systems that allow unique operations, train teams on how to work strategically, and oversee the entire IT network to ensure complete operational efficiency is always guaranteed.
What Does IT Outsourcing Look Like in 2023?
Although outsourcing continues to be a popular choice for many different business functions, it is reported that IT outsourcing is one of the most popular forms that companies currently choose to invest in.
In 2023, the spend on outsourced IT support is predicted to reach $519 billion worldwide, which is a 22% increase in 2019 spending. This could be for several reasons. Still, the main one we have seen is that companies are now feeling more confident post-pandemic and are aware that investing in robust IT networks is the best way to weather future storms.
2022 also saw the number of UK technology job vacancies hit a record high, which is set to continue throughout 2023. Although some companies will outsource IT to save themselves money in the long run, others may not be able to recruit the required talent. Outsourcing the world to agencies with experts means that operations are always unaffected by a lack of available employee resources.
2023 is also set to be another year in which cyber security remains a prevalent term in the minds of business managers. The need for a solid team to protect a company is a necessity that outsourced IT companies will continue to fulfil as we navigate another technology-heavy year.
With companies coming back from a tough few year and the need to bring in revenue more critical than ever before, IT outsourcing will go from strength to strength in 2023.
What Is Next for IT Outsourcing?
At Creative Networks, we think that the IT outsourcing sector will continue to increase in popularity for several reasons. These include the following:
Cloud-operations are more critical than ever before. It is reported that by 2025, 85% of organisations will be cloud-first. This modern way of working is essential for meeting the needs of hybrid working teams and global operations, which is a positive outcome of the Covid-19 pandemic. Companies now understand that they can be open to location and that bringing in talent from anywhere in the world is possible.
Outsourced IT will play a pivotal role in facilitating secure cloud operations and creating bespoke software solutions that allow unique IT networks to be created for use in this way.
Cybersecurity will continue to be a top priority. By 2030, the global cyber security market is predicted to be worth a staggering $197.44 billion. This reflects the continual threats that companies face as they look to transfer their operations to digital platforms.
IT outsourced services will be essential for providing the level of monitoring and security compliance that will be essential for not becoming a victim of risks. Cyber threats continue to become more intelligent by the day. As a result, businesses will look to bring in experts that can provide them with peace of mind that their data is safe is a high priority.
Competition for consumer spending will be higher than in recent years. We have all heard the term’ cost-of-living-crises banded around, and business leaders are not able to escape from the effects of this. As far as consumers are concerned, spending is set to be lower. This means that if a company is not presenting a modern, digital image, that will lose faith and be passed by for a competitor.
IT services will play a large role in creating unique and smooth-running software that meets consumers’ increasing expectations.
Why Should You Choose Creative Networks for Your Modern Outsourced IT Needs
Providing IT support that is bespoke and tailored is what we do best. This is reflected in our strong library of case studies and position as a trusted G-Cloud 13 supplier.
We understand that the future needs of IT will be vaster than ever before, which is why we have created a portfolio of services which meet all business requirements. As an IT agency with experience in providing Level 1, Level 2, Level 3 and Level 4 IT services, we are well set up to help companies continue achieving their IT goals in the coming years.
Contact us today to find out more.