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Outsourcing of IT services - past, present and future

Current and future trends in outsourcing of operational IT services. Maturing market, professionalization, realization of expectations and growth of pressure on prices balanced by technological innovations.

According to data from the IT Ročenky 2012, the market of outsourcing services should generate a turnover of USD 150 million this year. Without a crystal ball, I wouldn’t like to hazard a guess at the level of market growth we can expect. This article will concentrate more on underlining past and current trends in development, complemented by a humble forecast of the direction that outsourcing IT services will take in the near future.

About ten years ago in the USA and Western Europe we saw the biggest long-term outsourcing contracts being carried out. Some of them spread over a decade. We can mention, for instance, Deutsche Bank, Unilever, Endesa, Continenatal and other companies that took the step. Many of these companies decided for offshoring or nearshoring with the aim of achieving the best possible price thanks to cheap labour in Central and Eastern Europe, with the more ambitious heading to Asia. Results were varied. The long-term contracts were later revised, which allowed providers and customers alike a healthy degree of self-reflection.

In Slovakia, about four or five years ago we could read articles on the benefits and risks of outsourcing IT services and academic debates with a marketing undertone would take place on the subject at conferences. Today, though, outsourcing is common practice and is now well known on the Slovak IT market, by both providers and customers. In fact, it is the years of economic transformation – I deliberately avoid the word crisis – that will prove to be crucial for the future development of this part of the Slovak IT sector.

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Michal BróskaMichal Bróska Director of Product management

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PosAm Managed IT Services