According to ComputerEconomics, the IT budget share spent on outsourcing IT companies constituted 10.6% in 2016. At ComputerEconomics, they believe, basing on their survey, outsourcing is becoming more and more promising for the smaller companies. Such companies currently outsource almost at the same level as the larger ones. The most popular type of outsourcing is application development with 40% of organizations outsourcing this function and being about to increase further. 59% of companies plan to increase outsourcing in the IT security sphere.
Deloitte survey found that the majority of companies prefer to dedicate more time at the beginning of the outsourcing process to ensure desirable outcomes. Moreover, to achieve those, they count on the innovations, easy relationship management, and innovative strategy flexibility. Currently, 72% of their respondents outsource IT companies and 33% are planning to enhance it. 59% outsource with cost saving in mind, 57% want to make a shift towards the core business issues, 47% solve their capacity issues in such a way, while 33% improve service quality. Companies surveyed report about fewer issues with provider proactivity, innovation, responsiveness, resource and service quality. The majority of respondents rate their vendors as above average.
Here are a few other companies that are more than happy with the outsourcing results and managed to achieve success with the help of outsourcing their IT departments.
Skype used outsourcing, too. Its founders, Swede Niklas Zennström and Dane Janus Friis, used their peer-to-peer sharing program for music and video sharing coming eventually across the legal troubles. So, they decided to use the technology for voice-calling and telecom industry. Together with the outsourced team of developers, they created Skype.
AppSumo, the market for apps, is another interesting example of outsourcing. He created a website by himself but hired a freelancer to create a PayPal button on a site, paying for it $50.
UpWork, the platform that connects clients and vendors, was developed by a team of third-party contractors. They claim that, currently, 150 of 200 employees are freelancers.
Before being a headliner of 2014 with the largest IPO in history and finding its own developers, Alibaba outsourced its development department to the US.
Slack outsourced their design to the independent team, and the whole visual part is created by the later. Outsourced designers created for Slack their logo, website, and app.
Opera, a web browser, benefited from the outsourced team of developers in 25 different offshore locations, being headquartered in Oslo, Norway.
Oracle also outsourced staff from different countries to create MySQL. GitHub is another famous user of the outsourcing scheme.
To sum up, outsourcing is a great way for a company to cut operational expenses and focus on the core business issues. From our experience,