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Total Infrastructure Outsourcing Trends 2016

The upsurging demand for IT service integration and automation has entailed data center outsourcing services. Outsourcing IT infrastructure has been trending for the long time now given its cost-effectiveness and high efficiency compared to owing and maintaining own data center. However, in the near future we might see many shifts in the IT outsourcing industry and experts predict that the attention will be more on building hyper-speed deal making, man-machine interaction and a lot more.

TIO Trends

According to IDC, 60% of IT equipment and services organization depend on to run and promote their business will land in the colocation sector by 2017. As a result, Indian enterprises are on a rise to adopting colocation services. Gartner forecasts that Indian Data Center market will reach $2 Billion this year and the overall DC growth will increase 20% in the time span of 2013-18.

The major consumer of data center services in India include BFSI, Tele-com, Insurance, and IT sector and these business verticals are considered to play a great role in uplifting the data center market in a couple of years. However, as the outsourcing market is speeding up, IT operators will be pressurized with the emerging outsourcing trends. As organizations strive to upgrade and make their business digitally advanced, they’ll demand their IT service provider to deliver more agile and sophisticated solutions. “Companies who decide on a digital strategy will execute quickly in 2016 to avoid seeing a technology shift or a competitor jumping ahead,” says Peterson of Mayer Brown. “We see increasing numbers of clients deploying substantial negotiating teams working on an agile basis to close smart deals fast.”

Demand for standardization

Soon, IT suppliers will focus more on centralizing their IT delivery systems in order to cut down overhead, encourage efficiency and improve service quality. Instead of using services from multiple vendors, users will demand for a centralized solution that will effectively serve all internal business operations. This will allow data center service provider to deliver new features and solutions that can be easily deployed on to the consolidated service platform rather than separate deployments that keeps adding cost. In addition to centralization, IT service standardization is likely to emerge that will promote scalability and system automation.

Security needs to gain ground

Security is yet another essential concept that will take the center stage and it will surely influence outsourcing strategy in 2016. As Internet of Things (IoT) becomes more dominant in consumer and commercial products, security risks are poised to grow and thus, IT operators will have to ensure to deliver finest security solutions. Not to forget that as technology evolves, attackers will find new ways to exploit business data and information and if organizations fail to improve their security features, they might end with devastating effects.

Rahul Singh, managing director at outsourcing consultancy Pace Harmon says, “The threat profile changes every day and with every added protection comes a new vulnerability, not to mention it is becoming harder and harder to tie products together to deliver a robust security solution.” He also added that soon their will be rise of the Chief Security Officer and more enterprises will start opting for specialized security vendors with Security-as-a-Service capabilities that can safeguard data irrespective of where it resides.

Rise of Bimodal IT

As Gartner defines, Bimodal IT is the practice of managing two separate but coherent styles of work: one focused on predictability; the other on exploration. In simple words, the first mode highlights safety and accuracy, which is the conventional type targeting back-end systems, while the second mode emphasizes on speed and agility, which is exploratory and promotes development of new projects. The point here is that these new techniques are set to make a place in this competitive IT domain. Big market players such as HP and IBM are opting this concept. What bimodal IT do is it let users opt IT solutions and enables them to concentrate of both traditional and modern projects separately. So with the use of bimodal IT, organization can easily and quickly innovate and that can enable company to gain a better market value.

Conclusion

After analyzing the shifts in the outsourcing space, IT operators will have to consider both their IT strategy and business strategy and coordinate them to match pace with the evolving IT landscape.