In the context of the global economic recession, the trend of IT outsourcing becomes noticeable. Businesses need to find ways to reduce costs and increase flexibility to overcome difficulties. IT outsourcing can be a reasonable solution, allowing you to hire an IT service provider at a lower price and expand/rescale according to need. At the same time, access to expertise and new technology also helps drive innovation and growth during these difficult times.

How IT Outsourcing company changed to adapt the global economic recession

In the context of global economic recession, IT outsourcing trends may be affected in some ways, however, it may also bring some benefits to businesses. Here are some factors that may affect IT outsourcing trends during economic recession:

• Increased focus on cost reduction: During economic downturns, businesses often tend to focus on reducing costs to increase competitiveness. IT outsourcing can be considered a reasonable solution to reduce costs because it allows businesses to hire IT service providers at lower prices than building and maintaining an internal IT department. .
• Increased demand for flexible services: During economic downturns, businesses may need increased flexibility to adapt to rapidly changing markets. Outsourcing IT allows businesses to scale up or down based on specific needs and save time and resources.
• Technological innovation: In their quest for recovery and growth, businesses can focus on technological innovation to improve productivity and efficiency. IT outsourcing can help businesses access expertise and specialized skills in the technology sector, while offloading internal departments to focus on other core activities.
• Change in business model: Some businesses may change their business model during an economic downturn. IT outsourcing can assist in this transformation by providing flexibility and the ability to scale IT systems according to new requirements.

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In the IT outsourcing trend in the context of the global economic recession, increased focus on cost reduction becomes an important factor. During times of economic hardship, businesses face pressure to increase competitiveness and maintain survival. Therefore, IT outsourcing can be seen as a reasonable solution to reduce operating costs.

By outsourcing IT services, businesses do not need to make large investments in infrastructure and human resources to build and maintain an in-house IT department. Instead, they only pay for the specific services they need. This reduces financial risk and increases the ability to optimize resources.

Additionally, in a recessionary environment, IT service providers can offer value packages at more competitive prices. This promotes competition among providers and benefits businesses with reduced costs.

However, in the process of outsourcing IT, businesses need to ensure that the transfer of services does not affect the quality and performance of the IT system. Choosing the right experienced and reputable IT service provider is very important to ensure that the cost reduction goal can be achieved without affecting the core business activities of the business.

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In the context of the global economic recession, the increasing demand for flexible services in the field of IT outsourcing has become an important trend . In difficult economic times, businesses are faced with rapid changes and transformations in the market. This places a demand on the flexibility and adaptability of IT systems.

IT outsourcing allows businesses to flexibly expand or scale down according to actual needs. When the economic situation is unstable, hiring a flexible IT service provider allows businesses to scale up or down operations quickly and save time and resources. Businesses can increase operations when the market recovers and scale back when facing difficulties.

Furthermore, flexible services in IT outsourcing also meet the short-term needs and special projects of businesses. Instead of having to invest in systems and resources to handle short-term projects, businesses can hire IT service providers to perform specific tasks and then end the contract upon completion. wall.

In general, in the context of economic recession, the demand for flexible services in the field of IT outsourcing increases, allowing businesses to adapt to rapid market changes and optimize the scale of their operations.

Technological innovation has become a key factor. In the quest for recovery and growth, businesses need to focus on improving the productivity and efficiency of their IT systems. IT outsourcing can play a vital role in driving technological innovation during these difficult times.

When hiring a professional IT service provider, businesses have the opportunity to access experts and specialized skills in the technology field. IT service providers have in-depth knowledge of the latest technology and advanced methods. This allows businesses to use the most advanced solutions and technologies to enhance performance and enhance competitiveness.

Furthermore, IT and outsourcing helps to reduce the workload on the internal IT department of the enterprise, allowing them to focus on other core activities. This creates flexibility for the internal IT department to focus on developing and implementing innovative technology projects, instead of having to spend time and resources on daily work.

The use of new technologies can also create new opportunities and reshape a business's business model during difficult times. IT outsourcing provides the ability to expand IT systems according to new requirements and facilitates technological development and innovation.

The shift in business models has become a necessary trend in the IT outsourcing industry. Some businesses may choose to change their business models to seek recovery and growth in these difficult times. IT outsourcing can play an important role in supporting and adapting to this change.

Business model transformation often requires flexibility and the ability to scale up or down quickly. By using IT outsourcing, businesses can take advantage of the flexibility of IT service providers to scale systems and services to new requirements. This helps businesses save time and resources to adapt to new business models quickly and effectively.

In addition, IT outsourcing provides access to experts and specialized skills in the technology field. This supports businesses in implementing business transformation projects and implementing new technologies. Professional IT service providers can act as consultants and companions to help businesses adopt modern technology and optimize business operations.

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Vietnamese IT Outsourcing business: Solid growth prospects in 2024

2024 is predicted to be a promising year for Vietnam's IT Outsourcing (ITO) industry. With the bright spots in revenue and profits of leading IT businesses like FPT, this will create motivation for small and medium-sized ITO businesses to reach further and grow steadily not only in the domestic market. but also exported to international markets.

Highlights of Growth

The revenue of large, leading IT companies in Vietnam has recently shown positive signs. Specifically, FPT Joint Stock Company, with the preliminary business results for 2023 that the company announced, shows that revenue in 2023 will reach 52.6 trillion VND, an increase of 19.6% compared to 2022. Profit before tax is 9.2 trillion VND, an increase of 20.1% compared to 2022. Of which, the technology segment grows strongly with revenue of 31,449 billion VND, an increase of 22.1% thanks to growth from the service segment. Global IT.

FPT's growth is expected to be the driving force for Vietnamese IT enterprises to expand further in the coming time, not only domestically but also in the international market. 

Besides, according to the representative of Vietnam Software and IT Services Association (VINASA), total industry revenue in 2023 will reach 148 billion USD. In 2023, despite being in a period of economic fluctuation and recession, IT businesses still have good and positive signs, a signal for sustainable growth in 2024 and the future. 

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Growth Prospects for Vietnamese IT Outsourcing Businesses 

Vietnam is increasingly asserting its role as a center for providing IT outsourcing services amid the global digital transformation trend. Last year, Vietnam ranked 7th out of 78 countries in the Kearney Global Services Location Index, focusing on IT Outsourcing. 

According to Statista's report, the global IT Outsourcing market is expected to reach 410.2 billion USD by 2027, an impressive number in these turbulent times. Besides, in 2024, more opportunities will come for Vietnamese IT businesses when the US and EU markets will recover spending demand for this field.

According to Gartner's forecast, spending in the IT field in 2024 will grow steadily at 8%, reaching 5.1 trillion USD due to expectations of investment in Cloud, information security, AI and automation. chemistry. The software and IT services sectors are expected to grow by 13.8% and 10.4%, respectively.  

In the long term, according to KBSV Securities Company, spending on the IT sector will continue to grow thanks to the development of technology. This requires businesses to conduct thorough research and have strategies, invest heavily to increase competitiveness, adapt to inevitable trends, and keep up with the development of world technology. 

Conclude

2024 will be an important milestone for the development of the IT Outsourcing industry in Vietnam. With positive signs, potential opportunities, a competent human resource system, and modern technical infrastructure, ITO enterprises in Vietnam have enough basis to believe in a bright future and sustainable development.