IT outsourcing is increasing, but not as we know it

As more and more businesses accelerate their digital transformation – often through choice but sometimes through necessity – IT outsourcing is growing in the UK. Businesses are spending more as choice becomes greater with the emergence of new and innovative service providers, with the more established players adapting in order to stay relevant. It’s accepted that change is in order, to futureproof businesses of all shapes, sizes and types – with most companies, regardless of sector, now reliant upon technology to remain successful, attract and retain the best talent, and ensure operational efficiencies in every department. A recent study by Whitelane Research and PA Consulting, which looked at 760 IT sourcing deals, found 71% of UK organisations plan to outsource at the same amount or more this year. Meanwhile, the study revealed that for the first time since 2015, organisations are planning to insource less. Only 16% are planning to insource more IT, compared with 22% last year. This can largely be attributed to the emergence of technology start-ups and specialist innovators challenging the more traditional IT providers through digital services, enabling businesses to streamline operations across the board using technology such as artificial intelligence (AI), cloud computing and robotics/automation. The delivery of new services that in the past would’ve required substantial investment in facilities, recruitment, training and infrastructure can now be packaged up and delivered more cost-efficiently, more quickly, and much of the time with better short- and long-term results, with AI and automation completing large parts of the work. The report also suggests that “entry barriers are reducing for digital age service providers ” and businesses are more open to working with smaller players who are proving their worth. But in turn, the larger providers have already begun evolving and are ready to capitalise on the opportunity of growing business transformation. SCC has always reinvested heavily in ensuring its services meet the current and future demands of its customers. We were ahead of the curve by investing more than £50m in our Data Centres before anyone else was able to react to a growing requirement for cloud services and digital transformation. As a result, SCC already has well-developed IT Solutions in Flexible Resourcing, Field-based Workforce management and optimisation, Service Delivery Centres and ServiceNow IT Service Management. We help customers manage non-core activities through technology innovation, enabling them to focus on what they are good at, whilst we lower operational costs, improve customer experience, etc. Source:
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