IT Outsourcing Dominance: Challenges, Benefits, and Use

Published 05 Mar 2024
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In today’s rapidly evolving business landscape, managed services are reporting a very dynamic growth. By 2028, their global market is forecasted to exceed a staggering $500B[1]. With – seemingly – everyone farming out their IT services to external providers, are we now in the era of IT outsourcing?

What will you learn:

Why are so many companies investing in IT outsourcing?
Which IT outsourcing services are the most in demand?
What are the top benefits of IT outsourcing?
How has Poland become the European outsourcing power?
Who to entrust IT outsourcing with?

The Rising Impact of IT Service Centers on Digital Transformation

As challenges related to globalization, cybersecurity, and sustainability multiply, more and more companies are looking for solutions to cut down on costs and boost their performance. In recent years, Shared Services Centers (SSCs) have emerged as a way to help them achieve just that.

Resembling dedicated outsourcing units specialized in certain functions – from IT-related processes to legal advice – SSCs effectively streamline work for outside companies that hire them. Though they’re hardly a new concept (the first SSCs were formed in the 80s), their popularity has never been as strong as now.

In 2023, their global cost was estimated at $731B.

According to Deloitte’s 2023 “Global Shared Services and Outsourcing Survey”[2] companies use them mostly to outsource services related to Finance (91%), HR (62%), IT (57%), and Procurement (48%). In IT, the most coveted outsourcing services were IT Service Desk (70%), app maintenance & support (56%), and security & control (47%).

“Global Shared Services are taking the driver’s seat in delivering transformational capabilities to organizations (…) and are transforming to leverage global, multifunctional, and hybrid working models with tightening economic conditions,” reads the Deloitte report.

But why are they getting so big right now?

The Benefits of Outsourcing Your IT

As markets become more globalized and technology continues to advance, businesses are faced with growing complexities and demands.

Outsourcing IT services offers them a strategic solution to navigate these challenges by offering access to specialized staff, tapping into a global talent pool, and allowing for expense reduction. By farming out IT functions, companies can also dedicate more resources to their core business activities rather than handling tasks that can easily be contracted out.

Elimination of Training and Recruitment Hassles

There’s no need to waste time on employee training or recruitment, no need to worry about payroll, and no need to lose sleep over equipment updates – this part is entirely on the side of the outsourcer, which frees the first company’s capital and funds to be put to better use elsewhere.

Cost Reduction

In fact, according to Deloitte’s report, it’s cost reduction that’s at the top of the list of reasons why companies choose IT outsourcing in the first place. From reducing the need for significant investments in infrastructure or hardware/software licenses to avoiding the costs associated with hiring and training specialized IT personnel, assigning IT-related tasks to professionals who already possess the necessary expertise and tools can be a great way to save up – even if it requires some investment at the start.

Scalability and Cost Flexibility

Additionally, outsourcing allows businesses to scale their IT resources up or down based on their current needs, providing cost flexibility and efficiency compared to maintaining a fixed in-house team.

Boost in Process Efficiency

Another reason why IT outsourcing is becoming so popular is that it boosts process efficiency by implementing standardized methodologies that the outsourcer has honed in through years of experience, which may – and usually does – translate to a higher level of consistency and quality in delivered projects.

Access to a Diverse and Global Network of Professionals

It also enables companies to tap into a global network of skilled professionals. Rather than being limited to hiring locally, outsourcing allows organizations to collaborate with experts from around the world. This access to diverse talent pools enhances the likelihood of finding individuals with the specific skills and experience needed for a project.

What are some other benefits that IT outsourcing gives?

Poland as the EU Leader

With IT outsourcing growing in power, so is Poland’s position in the shared services market.

In fact, as of 2023, Poland is the leading outsourcing force in Europe and the second biggest shared services center in the world (right after India). Clients from all over the world choose our country because of its convenient location in Europe’s center, highly educated engineers, good language skills, and relatively low costs.

As a result, Poland has over 435,000 employees in more than 1,800 business process outsourcing (BPO), shared services (SSC/GBS), IT, and research and development (R&D) centers [3]. According to Deloitte, the country belongs to the top 5 fastest-growing outsourcing centers worldwide.

Comarch Elevates Cracow as Poland's Top SSC Hub

Even though the highest number of Polish shared services centers (330) can be found in Warsaw, it’s Cracow, with almost 100,000 people working in the sector and 260 SSCs located there, that’s leading the way as the country’s biggest industry employer [4]. The city’s dominance is solidified by the presence of the Polish Investment Zone, the Cracow Technology Park, and some of Poland’s top IT companies.

And that includes Comarch.

With over 30 years of proven experience, Comarch is adept at dealing with challenges many organizations seek to solve through IT outsourcing. The company boasts 7000 experts, over 90 offices in 33 countries, and 15 data center facilities around the globe. In fact, in 2023, Comarch expanded its data center dominance by opening up a new state-of-the-art facility in Mesa, Phoenix, where it provides businesses from all around the world with secure and reliable infrastructure – including cloud, colocation, managed service, and migration support.

It’s through solutions like that Comarch is able to offer a comprehensive approach to IT services – from cost management and 24/7 support to providing faster time-to-market – the full range of which covers:

Managed Infrastructure Services
Cloud Services
IBM Power Services
Network Management Services
Service Desk
IT Department as a Service
Desktop & End-User Support

Comarch provides its services to various industries, including retail, automotive, finance, banking, and healthcare. With its highly qualified staff and expertise in niche technologies, Comarch helps companies from all over the world meet their business goals by taking care of the IT side of their projects.

One of them is Valeo, an international auto manufacturer with nearly 110,000 employees and a turnover of 18+B euros, that’s been collaborating with Comarch since 2014. For over a decade, the Cracow-based company has provided Valeo with centralized Service Desk services in German and English, as well as ongoing local support for approx. 4,700 end-users, 24x7 monitoring, and administration services for the entire IT environment.

„Throughout new acquisitions and diversifying portfolio, Comarch has invariably provided us with high-quality services, flexibility, readiness to implement additional IT projects, and an experienced team of expert engineers. With a reliable and scalable partner like Comarch, Valeo was able to accomplish its business objectives and significant growth in the automaker industry,” summarizes Thomas Mathes, Regional IT Infrastructure Manager at Valeo Germany.

The Future of IT Outsourcing

The IT outsourcing services are likely to keep rising, with advancements in technology only propelling the change. As automation and AI become more and more integrated into IT processes, outsourcers will have to focus on expanding their offerings with AI-driven analytics, robotic process automation, cybersecurity, and cloud computing solutions. They may also need to adapt to the growing need for sustainability and put greater emphasis on responsible sourcing and the environmental impact of their work. Overall, the future of IT outsourcing promises increased innovation, efficiency, and strategic collaboration in a rapidly changing digital landscape.

As IT outsourcing becomes the new norm, it may be beneficial to jump on that bandwagon sooner rather than later – read about the IT outsourcing solution tailored to your needs: COMARCH Managed IT Services.

Key takeaways:

Shared Services Centers and outsourcing solutions are growing in power – their most coveted in finance, HR, and IT.
The top benefits of IT outsourcing are cost reduction, enhanced process efficiency, and increased access to global talents.
Poland is the biggest outsourcing center in Europe and second-biggest in the world. Cracow is the country’s IT outsourcing capital, with 1 in 4 people from the sector working here.
Comarch is one of Poland’s biggest IT companies and offers a wide range of IT outsourcing solutions, including Managed Infrastructure Services, Cloud Services, IBM Power Services, Network Management Services, Service Desk, IT Department as a Service, and Desktop & End-User Support.