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When Your Own Team Fails

Virtual Electronics’s Review of IT-Outsourcing Trends After 2020

Today, the business in the IT sector turns to the services of outsourcing companies for various reasons: from saving money and striving to become more mobile and flexible in the world market that had sagged at the beginning of 2020, to the need to gain additional experience in a certain field. However, according to the Global Sourcing Association (GSA) report, in 2020 the trends in the IT outsourcing market are changing dramatically and such changes will be especially noticeable by 2021.

Previously, most companies perceived outsourcing exclusively as a tool to reduce costs. In 2020, this point of view is not so widespread – sometimes developers, system administrators or other members of the client’s team are simply not able to solve the rising problems, they simply don’t have enough qualifications for this. Therefore, IT outsourcing clients today are starting to focus on the effectiveness of the team, rather than on cost savings. In addition, more and more often the client is interested in an outsourcing company, which is able to become not just an executor, but a professional partner, who is interested not so much in the process of cooperation, but as a result of this cooperation and is ready to share both profit and loss with the client.

In general, despite various reasons for resorting to outsourcing, the vast majority of companies agree that improving the quality of service and finding new business opportunities with an outsourcing partner attract them much more than simply saving money.

At the same time, in recent years, the customer satisfaction rating with the results of cooperation with outsourcing companies is at a stable low. Customers believe that most IT outsourcing service providers today do not have sufficient flexibility and innovation.

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We believe that outsourcing service providers should take into account such moods among customers and try to carefully evaluate the level of customer focus of their company. This will help you to increase your competitiveness, get additional contracts and, most importantly, not lose your business in today’s market, where only leaders in their field and those companies that can accept the new rules of the game and rebuild as quickly as possible will stand confidently on their feet. “Rebuild” in this case will mean that your company accepted the fact that today competently built partnerships between an outsourcing company and its client will be no less important than the focus of your business on innovation.

However, there is good news for outsourcing companies. Today we can already assume that the field of IT outsourcing will grow rapidly along with the number of companies seeking to delegate more tasks to third-party performers in order to limit the number of employees in the office (which, obviously, will be one global trend in 2020-2021).

Another notable trend in outsourcing in 2020-2021 is that narrow IT specialists are becoming an ever-growing shortage. This leads to increased demand for IT outsourcing, where even a very large company will turn to outsourcing in order to attract such rare personnel to solve the problems of a particular client or project. Among such specialists, for example, digital security managers, automation specialists, design thinking specialists, and so on, can be distinguished. In addition, along with the active growth of projects in the field of AR / VR, the number of clients who are in search of specialists who are able and willing to work with such promising technologies is proportionally growing.

In addition, an important trend is the development of global competition among IT outsourcing companies. Where companies from China and India shared the market 5 years ago, today there are a large number of large players from Ukraine, Belarus, Poland, Russia and Romania.

To summarize:

IT outsourcing service providers today must adapt to the trends of a changing market, studying the needs of customers who are determined to work with companies practicing a customer-oriented approach and offering their customers the opportunity to transform the old form of relationships that looked like a “customer-executor” into a new “partner-partner” form, where the provider of outsourcing IT services will find the courage to be proactive in sharing risks. In addition, the careful protection of client’s private data is becoming increasingly important in the field of technological outsourcing.

The implementation of such strategies in the work of your company and the careful study of new trends in the field of outsourcing can become a reliable support and incentive for your company to develop over the next few years.

Virtual Electronics PTE LTD is a Singapore based company specializing in IT outsourcing, mobile application development, and hosting solutions (  One of the latest Virtual Electronics projects is the VEnterface intelligent platform aiming at providing Australian innovative entrepreneurs with digital entry to the Singaporean market.