Recently, IDG Research conducted a global study of 1,250 business and IT leaders and influencers. These business leaders were polled regarding the challenges that they face in 2020, as well as the opportunities they saw. The following information is gleaned from that report. One of the main outcomes of the report was the shift from traditional outsourcing to the newly coined “smart sourcing”. The new term is defined as the selection of service companies that provide more than just the delivery of tactical IT solutions; but who can also nurture long term relationships and partner with organizations into the future.
The report stresses reaffirms that business continuity and security are integral the enterprise, as they entail working towards its very survival. But the data shows that the CIO is no longer alone in these efforts, as diverse and strategic individuals are essential to the process – from employees to partners and providers. This plays into the smart sourcing model, which proves that while verticals and siloes will always exist, the extended relationships will play ever-increasing roles in a business health and success.
Smart Sourcing: Key Findings
- Security: The IDG study reported that 57% of IT professionals stated that reducing security risks was an ongoing challenge, In fact, this was the highest rated concern of all listed. This struggle against an ever-evolving and ever more sophisticated cyber threat was also a key finding in IDG’s 2019 report, proving that it is top of mind for most business leaders.
- 55% of companies consider “reducing security risks” as the most important benefit derived from managed services providers.
- The recent pandemic caused a significant increase in remote working, placing even more demands on IT and security personnel. They are responsible for maintaining the security and operations of corporate network, information assets, data and devices, suddenly dispersed across many locations and making their job even tougher.
- IT professionals needed to rapidly shift and scale security operations from on-premise to remote support, often without the resources they would normally need. Managed services providers, with their deep bench of expertise and technology are seen as able to bridge the gap.
- IT professionals continue to report that the skills gap is widening, and expertise is harder to come by.
- End User Transformation: NTT Ltd.’s report reported that most organizations were not proactive regarding employee engagement. 48% admitted the requirement to make changes in order to effectively meet the demands of an evolving and changing workforce. Recent events have proven that employee engagement should be higher up in the leadership’s agenda. For instance, in March of 2020, NordVPN reported a 165% increase in usage as workforces were established in remote (home) locations, and collaboration tools such as Zoom and Slack are experiencing unprecedented adoption. While these tools allowed for remote communication and cooperation, it severely strained network bandwidths. The ability to rapidly scale these capabilities was a capability few considered prior to the current situation, but is now top of mind.
- Continuity of Service: Technical expertise has traditionally been ranked as the most important criteria when choosing a managed services organization to partner with. Smart sourcing allows them to tap into skilled resources from the managed services model which are lacking internally in their own organization. The report cites that 44% of organizations are looking for technical expertise, and 30% were looking for industry expertise.
IT teams have found it too expensive and resource-consuming to hire needed expertise inhouse, but find successful solutions through smart sourcing.
The new report recognizes that smart sourcing highlights what IT professionals need go forward – expertise and resource, rapid scalability, agility of response and affordability. Managed services models continue to represent one of the very best ways to address all of these security and operational challenges in 2020 and beyond.
Call Alliance IT today for more information on how we can assist your business to face emerging technology and security challenges.
