IT budgets of businesses of all sizes are increasing from year to year, according to the latest research delivered by a Computer Economics report. It comes as no surprise with the rising impact of the IT sphere in all aspects of human life. However, it is extremely interesting to learn how the spending within the budget is distributed. Some revelations found are extremely shocking.
First of all, the companies seem to remember that in-house IT departments are much more reliable and can be much more efficient than outsourcing services received from some third-party developers. And that’s the first time in several years when a four-year trend got broken. Spending plans have got reversed for the first time since the recession started and more and more companies engaged in various industries start exploiting their own IT departments instead of arranging someone else for that work. The overall share of IT outsourcing in the IT budget dropped down more than a percent which would be quite insignificant if it did not look like the beginning of a new tendency.
However, some analysts say that the reason for the IT outsourcing share shrinking is not the loss of interest in delegating development activities to the Third World countries but the close end of the recession period and the increasing resources companies and corporations can spend on IT. Also, it is quite interesting to note that the activities which the corporate sector prefers to keep to themselves are desktop support and disaster recovery — services which are closely related to the overall performance of the entity and the security of the process. Instead, activities which are popular to delegate to some third-party providers are Web and e-commerce operations, as well as mobile application development and application hosting.
In general, such distribution is quite in line with the latest trends in cloud computing and the unleashed war actions between top cloud providers (such as Microsoft and Google clouds) to attract more and more potential clients. Numerous representatives of the corporate sphere prefer to turn to professionals and make an agreement with some reliable and respectable hosting provider and a range of other more refined services.
Mobile development, which is also at the top of IT outsourcing services provided, has been instigated by the overhaul of the human understanding of digitals and their place in the everyday life. Not just corporate clients preoccupied with the staff performance and working efficiency rates but millions of common users of gadgets got to learn that apps improve their way of life, make it more comfortable and entertaining. Taking into account quite reasonable encouragement for app developers provided by Apple and money incentives (which are always luring) and as the result there are legions of those who desperately need an app of the required functionalities and preferred standards and armies of those who are ready to compete mercilessly to get the project.
E-commerce has been one of the most popular applications these years. Despite the notorious dot-com bubble which caused the extinction of hundreds of well-established companies and a severe blow at the financial state of many others, e-commerce still provides good returns and promises a steady growth over the years. According to some estimates, people in their 20ies-30ies prefer to make all the shopping via their portable gadgets or working desktops. Taking into consideration that the age of turning to digitals is decreasing, as well as the fact that gadgets become available all over the world, significantly enlarging the potential customer base, e-commerce will be on the rise in the next 5-10 years.
Besides, the market trend is not always formed by the demand. The supply has the same power as well. Steve Jobs provided a good example of that. Every day common consumers and corporate clients are told that they need a mobile app or a web application and they desperately follow that path. Development of such apps provides fewer difficulties and can be easily transferred to some external development team working under close supervision. All that contributes to the overall success of such services and their top positions at the top list of IT outsourcing services.
So, to make a short summary, it is evident that top IT outsourcing services share much in common such as relative independence of the development process which demands just close supervision while corporate IT departments focus on activities which imply more integration into the corporate processes.