As companies strive to outmaneuver their competition, through product, service, or revenue model innovation, the drive to cut costs and improve operational efficiencies becomes an unquestionable business imperative. These demands require smart usage of new technologies combined with talent that is seasoned in the sophisticated implementation and management of IT assets.

The Outsourcing Model is becoming a strategic enabler of business value through the benefits it brings in lowering total cost of ownership (TCO) and expanding geographic reach while leveraging the technology, industry, and process expertise of the service provider.

Global companies are boosting their bottom lines by tapping into the benefits of outsourcing engagements for transformation projects, be it in the form of portfolio optimization, enhancement, or redesign work across the technology stack. Generally, the service consumption complements the customer operations rather than replacing internal departments as recent researchers indicates very few of the customer companies reduce internal staffs after joining up a service provider.

Instead, notably in larger companies, adding external services to the operations frees up existing valuable resources to focus on more strategic engagements, like a cloud initiative or a custom app development, resulting in a win-win situation. Cost savings, the previously seen as the primary benefit of Service Providers, now are considered the base benefit and customers are looking for additional benefits like efficiency, continuous improvement, reliable cascading of business objectives and even security.