2014 IT Outsourcing Predictions: 'Cloud' Computing and Mid-Market Growth

Alastair Kitching, Sales and Marketing Director for IT Managed Service Provider Esteem Systems, explains why he predicts growth in the mid-market sector for 2014, and an increasing pressure on IT Outsourcing Providers to deliver more flexible services.

“The past 12 months have seen growth in the mid-market sector for IT Outsourcing, which I expect to continue during 2014. The heavily marketed term ‘cloud’ has led to the development of this market over the past few years, which prompted many organisations to think differently about traditional in-house IT, and led them to the concept of IT as a service. As a result, an increasing number of organisations continue to hand over the responsibility of their IT to a service provider, either as a Managed Service or complete Outsource, where any number of ‘cloud’ technologies and delivery models can be used.

Outsourcing in the mid-market sector is an increasingly desirable prospect for businesses, particularly as the economy starts to pick up and organisations want agility from their IT. The increasing complexity of IT also continues to make it difficult for mid-market businesses to retain skills in house, making IT Outsourcing a sustainable solution to having access to a diverse range of expertise.

Selective Outsourcing will be another area of market growth during 2014. Selective Outsourcing has emerged as a popular solution for medium to large organisations in both the commercial and public sector. These organisations prefer to engage multiple partners for different applications and IT services, rather than engaging with one large traditional outsourcer, as they are attracted by the more flexible and competitive environment that it creates.

At Esteem Systems we are also seeing an increasing number of rapidly growing organisations turning to IT Outsourcing as a way of freeing up in-house time to focus on core business strategy. As well as being able to focus more on business growth, developing a long term partnership with an outsourcing provider will continue to benefit growing businesses by ensuring that their IT can perform and adapt to support business objectives and the business size.

As a result of these areas of growth, at Esteem Systems we are seeing a change in demand for a flexible approach to IT Outsourcing. An increasing number of businesses are looking for bespoke services to fit directly with their business needs. In an increasingly competitive market, this will require IT Outsourcing providers to be more flexible in their service offering moving forward. IT Outsourcing Providers must now think innovatively about what services can be developed for businesses, and what ‘cloud’ services best fit as part of an IT Outsourcing agreement.”

Article published: 07/01/2014

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