The Ever Evolving Landscape of IT Outsourcing: Overview and Benefits

Over the last two decades, the rise and subsequently commercialization of the IT industry has been prolific. As a matter of fact, IT companies are mostly on the verge of vulnerability and their competitive edge is always at stake. This is not going to stop anyway – owing to intervention of changing and trending technologies (AI, ML, Blockchain, RPA) more or less.Amid such changing market landscape, it becomes difficult for the IT/Software development companies to chart out their strategies and outsourcing is no exception.

In the lure of time to market and gaining competitive advantage, nearly all types of IT and Software development companies face challenges to build up strong in-house teams and they are always on the lookout for dependable and trustworthy outsourcing options. IT clients expect to have the competitive advantage met the way it is met by their internal teams:

  • By utilizing the latest and trending technical domain expertise
  • By implementing deep understanding of market trends in technology to deliver great concepts
  • By producing good quality products and services to market faster than the rivals

According to the reports published by KPMG and HFS, IT clients expect their offshore or outsource business partners to fulfill the above points, some years earlier it was the not the same case, as companies solely focused on gaining financial benefits over anything else. However, today, clients, especially IT ones would want to have access to the talent and resources their offshore and outsourcing partners have towards the development of their products.

May be because of high expectation, the outsourcing industry has begun teetering among low-cost solutions, value to the product, staff augmentation, and so on. Amid the business defining parameters, trust has been playing an important role and it is consistently redefining the way outsourcing business is being done.

As per the report, clients believe that access to strategic talent and access to new technologies is considered important in their overall offshore plans – they will keep a tight watch over the partners because honest and trust trends in the outsourcing and offshore business will define their growth in the times to come.

In the current heat, outsourcers need to prove that they can do more than rudimentary operations, by offering a strategic partnership between provider and buyer that can add more technology, skill, and methodical capability for clients.

Benefits of Outsourcing:

If IT companies develop the business case for a full partnership outsourcing partner, they may get entitled to the following basic benefits:


Outsourcing partner increases and decreases the resource allocation as per the project demands. Client company remains unfazed by their addition and reduction of staff, also it adds no extra moral and financial pressure onto the main company.

Risk Management:

Outsourced development partner takes away the execution risk. It is a big relief, and the partner solely takes the ownership of projects and other deadlines. Maintenance and fluctuation and many other factors in between are taken care by them.

Internal Focus:

Since the development and other backend work has been offshored, now the main company can focus on core strategies, business development, product innovation, and much more.

Technical Expertise:

IT-oriented technologies change rapidly and the parent company cannot hire and ramp up staff on the basis of speculation and buzzing. However, at the same time they need latest technical expertise to have in their company to remain abreast. Thus, in this event, the pressure to have best and technical expertise is taken care by the outsourcers.

Apart from the above mentioned benefits, many other short and long-term benefits are associated with outsourcing work like financials, cost-cutting, labour market protocols, process expertise and so on.

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