The Most Significant IT Outsourcing Trends for 2016 Over the years, the IT outsourcing environment has experienced dramatic changes, mostly for the purpose of being able to improve their services and exceed the expectations of their clients. In the upcoming years, it is expected that more IT outsourcing news will continue to shock the industry and will offer novel solutions to existing problems. While no one knows exactly what will happen, below, you can see some of the IT outsourcing trends that will most likely be apparent and will cause significant shifts in the operations of IT outsourcing companies.

1. TOP 5 IT OUTSOURCING
TRENDS FOR 2016
January 2016
www.Kosbit.net

2. #1: THE INTERNET OF THINGS
 When you talk about the next big thing, as IT outsourcing news
points out, one that should not be missed is the internet of things.
Generally speaking, it refers to machine to machine
communication, which is centred on the use of data gathering
sensors. According to McKinsey, this will be an industry that is
worth $11 trillion in 2025. Outsourced IT services will play a vital
role in the development of advanced devices that can support
the Internet of Things

3. #2: BIG DATA AND ANALYTICS
 The analysis of big data is no easy feat. Therefore, many rely on
the services that can be provided by IT outsourcing companies
because of cost-effectiveness and expertise. The price point of
investing in big data analytics is just too high for some enterprises,
which is why it is expected that many of them will resort into
outsourcing in the coming years to take advantage of big data
without being too resource-intensive.

4. #3: PRICE PRESSURE
 It is safe to say that competition among IT outsourcing
companies has been more intense in recent years and will
continue to intensify in 2016. With many businesses interested in
upgrading their key technologies, such as through cloud and
analytics, it is expected that many providers of IT services will feel
the pressure to lower their price in order to attract a favourable
share of clients.

5. #4: CLOUD COMPUTING
 According to Markets and Markets, before the end of 2015,
cloud computing is an industry that will be worth as much as $121
billion. As one of the IT outsourcing trends in 2016, it is anticipated
that cloud-based technologies will be more commonly optimised
in various organisations as a way of competing and
differentiating the services they are offering. Those who do not
yet embrace the premise of cloud computing can be lagged
behind competition, especially not only because of automation,
but it is also cost efficient compared to manual processes.

6. #5: DIGITAL TRANSFORMATION
 While the transformation of businesses into digital can bring forth
a wealth of advantages, this can be unfavourable IT outsourcing
news. As many enterprises continue to discover automated,
scalable, and affordable solutions, outsourcing becomes less
attractive. With such, the challenge in 2016 is for providers of
outsourced IT services to rethink how they can create value and
mitigate risks to continue being a viable option.

7. CONCLUSION
 2016 will be a great and challenging year for IT outsourcing
companies. The changing business environment and demands of
the clients can present new challenges, which may be difficult to
tackle in the absence of expert knowledge. With such, to make it
easier for your enterprise to tackle these challenges, get in touch
with us and we will let you know how we can help.

8. www.kosbit.net
info@kosbit.net