While companies are currently trying to recover from the consequences of the corona crisis and adapt to changing business conditions, service providers can score with the support of smartsourcing. Above all, many managers see the task of optimizing the work environment in order to remain productively and efficiently connected, and the safety factor as a priority.
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To restore operations and prepare for the challenges of the coming years, companies see increased cooperation with service providers in the next 18 months. The breadth and depth of expertise as well as the rapid provision of platform-compatible solutions across the entire technology stack is crucial – from the cloud to the network, from the data center to security and beyond.
Smartsourcing in particular, as an approach for the selection and prioritization of service providers that go beyond the delivery of tactical IT solutions, plays an important role in this context. There is therefore a need for providers who can deliver business results that are aligned with the goals of the entire organization. These are the results of NTT Ltd’s Global Managed Services Report 2020. The IT service provider has examined the aspects of security, technological expertise and optimization of work processes. Around half of the executives surveyed see the task of optimizing the work environment in order to remain productively and efficiently connected, as well as the safety factor as a priority:
- Reducing security risks is not only the biggest task facing IT teams worldwide, but also the main reason for working with service providers.
- 48 percent of company managers already confirm the need to optimize the work environment.
- Technological expertise is the most important factor when choosing a service provider, whereby cloud infrastructure and security are crucial for the requirements.
“We see that companies go through different phases in these challenging times. In this process, for example, the security aspect comes into focus even more. This is considered essential in order to be able to meet challenges adequately. In this context, however, more than just a supplier is required; companies rather want a competent partner who has the necessary know-how to implement intelligent solutions quickly and flexibly. Especially in the current situation, it is clear how important this is. So it is possible to get back on your feet quickly and be ready when your own business area starts to pick up again, ”says Mirela Linaric, Vice President, Support and Managed Services at NTT Austria.
Identify and secure assets
57 percent of those surveyed named security risks as the central challenge in internal IT management. In view of the corona crisis, NTT Ltd. expects this number to increase further. Companies struggle to defend themselves against complex and increasingly serious threats. It is no surprise, then, that the majority (55 percent) turn to a service provider to help them minimize IT security risks.
Security is becoming increasingly important on the agenda of companies, particularly due to the spatial distribution of employees in connection with an increase in BYOD (bring your own device) models. Employees who work on insufficiently secured devices and networks from home offer numerous areas of attack. The Monthly Threat Report by NTT Ltd. April 2020 sees an increase in spam, phishing, and malware campaigns that take advantage of the corona pandemic.
Security is therefore part of smart sourcing – it was also rated by 32 percent of those surveyed as decisive for choosing a service provider. Other important factors are improved operational efficiency (30 percent) and increased performance and availability (29 percent). According to the report, 84 percent of companies believe that managed service partnerships will create real added value in terms of security literacy in the next three to five years, 44 percent see this as a significant advantage.
User in the focus of the transformation
In troubled times like the corona pandemic, companies may postpone innovation projects. However, the transformation of IT processes remains important – it now focuses more on the user. The report shows that 48 percent of companies recognize the need to optimize the work environment in order to continue to meet the needs of their own employees. The fact that these remain securely, productively and efficiently connected is at the top of the management agenda. This may also explain why 43 percent of respondents consider software-defined wide area networks (SD-WAN) to be the leading technology project. The desire to consider new services is reflected in the increase in the number of companies that want to outsource more of their IT than vice versa – almost doubling from the current 23 percent to 45 percent in 18 months.
Technological expertise has long been one of the most important criteria that companies take into account when selecting service providers. The ability to access qualified resources at will is a great advantage. When choosing a service provider, companies primarily pay attention to technological and industry-specific expertise (44 percent and 30 percent, respectively).
Use the expertise of service providers
In particular, the expertise in the areas of cloud infrastructure (73 percent) and security (53 percent) is a leader in the technologies that are currently outsourced to service providers. According to the report, these numbers will increase to 77 percent and 64 percent in 18 months.
The level of expertise offered by service providers is another prerequisite for developing a smartsourcing relationship. Against the background that IT teams in companies are under increasing pressure to achieve ever better business results, they require a partner who supports them in being able to act in a coordinated and powerful manner in their own company. This enables them to support their own business in the best possible way.
Also interesting for CIOs and their teams: The report shows how business changes affect IT decision-making. For example, the development of new products will have the greatest impact in the next twelve months (54 percent). In second, third and fourth place are regulatory changes (51 percent), penetration into new markets (48 percent) and the lack of skilled workers (47 percent).
“We are convinced that the choice of the right partner is crucial when it comes to adapting to the new normal. The results of our reports show how important such relationships are and what advantages they offer. The right partnerships give companies security and stability and help to secure existing sources of income. On the other hand, they support their transformation efforts, for example when it comes to the provision of remote customer experience (CX) platforms. These will continue to play a key role for companies in every industry, ”says Linaric.
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