Companies expected to outsource more work due to Covid-19 pandemic: NTT

Pune: As businesses work towards operating in a changing environment following the Covid-19 pandemic, many of them are expected to outsource more work, according to a report by technology firm NTT.

The ‘2020 Global Managed Services Report’, based on a survey of 1,250 executives in 29 countries including India, said that 45% organisations will outsource more than insource in the next 18 months, with 57% citing security risks as a key challenge of managing IT in-house.

In this environment, the delivery of platform-enabled solutions at speed across the entire technology stack becomes even more important, it said. From cloud to networking, data centre to security and more, breadth and depth of capability are essential to recover and restore operations and position organisations strongly for the coming years.

Damian Skendrovic, executive vice president, Managed Services Go-to-market at NTT, said, “During these challenging times, organisations move through a series of phases and are prioritising security as an initial response and recovery mechanism. They want more than a supplier. And instead, look for true partners to help them do the smart things well. Service providers need to help them adapt now, but also help them bounce back quickly when the business environment reignites.”

Demand for expertise in cloud infrastructure outsourced to service providers is set to increase in 18 months to 77% while new product development will be the most common impact on IT decision making in the next 12 months, said Skendrovic.

Other findings of the survey include:

  • Reducing security risks is not only the biggest challenge faced by IT teams globally, it’s the top reason for service provider consideration
  • 48% of business leaders already acknowledge a need to optimise the workplace environment
  • Technical expertise is the number one driver for selection of a service provider, with cloud infrastructure and security leading the demands
  • Security was also rated the most important factor for supporting the business case for using a service provider.

Source Article