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Strong Demand for IT Outsourcing Seen This 2012

By Infinit Outsourcing Subscribe to RSS | August 16th 2012 | Views:

An emerging branch within the outsourcing industry has been attracting the attention of key industry players and groups. Even though the business process and back office services are at the forefront of the industry and the ones being highly demanded by companies and businesses, the IT outsourcing sector is also doing its best to gain as much share of the limelight garnered by the other branches.

Recently, the Business Process Association of the Philippines (BPAP) made a statement pointing out that the revenue of IT outsourcing in the year 2011 has significantly rose 37% as compared to the industry’s growth of 24% in 2010. This is quite a remarkable improvement for IT outsourcing’s position within the outsourcing umbrella as the percentage for its revenue is a little higher than those of non-voice/knowledge process outsourcing’s and that of the more popular voice outsourcing’s.

However, when it comes to the employment count achieved by different outsourcing branches, IT outsourcing is still falling behind; a reason for this could be the degree of specialization required to be able to provide the right amount of service to their clients. In 2011, the IT outsourcing recorded an employment of 49,908 which is pretty low as compared to the 130,000 of the non-voice and knowledge process outsourcing sector.

BPAP also mentioned that this year, there will definitely be a stronger demand for IT outsourcing. With a strong demand also comes the strong demand for qualified and competent IT professionals and it is important for IT outsourcing solutions providers to be able to keep their talent pool healthier than the previous years. Also, the IT outsourcing companies must note that they should not be complacent when it comes to approaching the right kind of customers as there are still a lot to improve on in this sector.

What may have contributed to the significant increase in the revenue of the IT outsourcing sector would be the proactive performance of solutions providers in broadening their reach and service offerings to accommodate both potential and current clients.

Around a month ago, Mahindra Satyam, an India-based information technology services provider which is a part of the Mahindra Group, has announced that it has acquired a United States-based business process outsourcing company named vCustomer at a value of $27 million. The acquisition move done by Mahindra Satyam supports one of the reasons as to why companies perform acquisitions – to strengthen their competencies for them to be able to tap other verticals. This acquisition allows Mahindra Satyam’s business process operations to be able to penetrate and assist the retail and consumer technology verticals.

Often, businesses look for a service provider who will be able to assist them in doing different work processes while there are also some who look for a company that is specializing in just one area. No matter what, it is still important for information technology solutions providers to be able to continue on developing their talent pool and service offerings to maintain, or even surpass, their performance in the past year.

Infinit Outsourcing - About Author:

Jamee C is a Strategic Solutions Specialist of Infinit Outsourcing, a leading provider of outsourcing services to small and medium enterprises. It offers boutique it outsourcing that allow companies to gain a competitive advantage in their respective industries.

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