Are XaaS models changing the Future of Outsourcing?

XaaS vs Ousourcing

Everything-as-a-service (XaaS) has revolutionized business models to secure robust services that help them scale. Digital transformation demands enterprises to be agile to adapt to the rapidly changing market dynamics today. Hence businesses are now embracing serviced-based IT, or XaaS, to gain the agility and sustainability it requires to gain a competitive edge in their industry.

In today’s business environment, organizations need agile IT systems that offer tangible value, with the rise of smart devices and IoT driving the need for organizations to connect to their consumers in more ways than ever before. As per recent reports, the global XaaS market size in 2021 was valued at $436.82B. The research by Fortune Business Insights also predicts that everything as a service market size will scale from $545.35B to $2378.07B at a CAGR of 23.4% in the forecast period 2022 – 2029.

Outsourcing IT complexity – The need for XaaS

When companies have to manage every tiny detail of their own IT, they are unable to give the white glove treatment their customers and employees expect. They might just not have the time, skilled resources, or sometimes the budgets to do so. Outsourcing a part of their engineering & IT services to a capable partner can help them handle the challenges here.

XaaS is far more than just bringing all the different “as-a-service” models under a single umbrella. It incorporates the enormous range of products, services, and tools that modern technology platforms offer to consumers now. According to Gartner, IT spending will eclipse $1.3T in 2022, rising to $1.8T by 2025, much of which will be dominated by investment in cloud technologies and solutions.

However, many modern enterprises, even today, are built on outdated IT infrastructures that are incapable of supporting these new technologies. Manual systems, outdated user experience, and slow service are all staring at the face of rising expectations from consumers and employees alike.

For example, many third-party logistics organizations still rely on outdated manual systems for their everyday quotation and pricing operations. These manual approaches involve agents relying on calls and emails, which increases the turn-around time and affects the organization’s ability to focus on strategic business opportunities.

These organizations stand to benefit by leveraging the XaaS business model and collaborating with an experienced service provider. By doing this, they can entrust the system automation with the latest technologies, core integrations with other existing systems, application testing, and periodic maintenance with the selected partner. This can be done at a much lower cost and effort than what is required to set up an in-house team. Also, the organization can choose to ramp up or ramp down the different services as the need arises.

Driving efficiencies and cutting costs

XaaS is growing as an attractive option for modern organizations – mainly because of its ability to simplify complex IT infrastructure deployments and ultimately bring down costs & maintenance overheads.

With its holistic nature, XaaS ensures that companies get a controllable, predictable program that puts the power back in their hands. The XaaS service model provides the organization with the power to scale up or wind down on the different services as the requirement demands. The model hence ensures better efficiency for the money invested.

XaaS service model saves the organization from the need to hire/fire talent when a new requirement arises. It also ensures that the services continue unhindered even in the absence of employees associated with it. For example, following a resignation/sick leave/vacation at a company where IT is managed in-house, there’ll often be a disruption to service until that employee returns or is replaced. However, by using a Service Partner, companies get continuity and don’t need to worry about recruiting or backfilling.

Preparing for an agile and flexible state

Organizations that look to scale up but lack the know-how or infrastructure to embrace the transformation can benefit much from seeking the help of a managed service provider.

For example, organizations are not new to the concept of the cloud, but they may lack the know-how to deploy and manage multi-cloud environments. In the absence of skills and infrastructure, they need the right service provider to help them adopt cloud technology and scale using consumption-based pricing models. With automation being on everyone’s mind, it helps to hire a services provider to take a few redundant tasks off their plate with custom automation.

Trigent recently helped a premium natural health products company to deploy an enterprise-wide digital transformation and increase its daily order maximum throughput by 150%. The organization partnered with Trigent to leverage its technical knowledge and domain expertise. With the gradual evolution of the project, Trigent’s amoeba business framework enabled the organization to scale up as well as ramp down several critical functionalities.

Here’s what the company has to say about its collaboration with Trigent.

Challenges that organizations face with XaaS

Although flourishing, the everything-as-a-service model is not without its challenges. Data security and adhering to compliance are a couple of considerations that businesses face while considering the XaaS model

As organizations adopt XaaS into their business workflows, the vendors gather, store, and process a lot of data from across channels. Data is also gathered from multiple sources, and stakeholders have their own policies to govern the data. The challenge lies in ensuring the security of the data collected as well as ensuring that all data compliance measures are adhered to. This can be ensured with a structured process and collaboration with an established service partner.

Another major challenge is evaluating the prospective service partners and identifying the best to suit your requirements. Organizations would need to ask various questions to determine if the service provider can align with the organization’s needs and goals. Utilize case studies and references to analyze how they work with their clients, their delivery process, costs, time to market, etc., which can help form an overall review. Also, take a deep dive into how their experience, techniques, and other strategic aspects are fair in the various metrics your organization needs.

Improve efficiency with XaaS from Trigent

XaaS model enables businesses to operate at high velocity and reduce operational overheads. Not to forget the flexibility they offer to move workloads & resources when & where required. Business leaders acknowledge their role in solving the performance and productivity puzzle. For this very reason, organizations seek services from Trigent.

Trigent offers XaaS services across various industry domains, including transportation and logistics, insurtech, and healthcare.

Focus on tech innovations that create value for customers and shareholders, while we make it work for you. Let’s talk!

Author

  • Abishek Bhat is the Associate Vice President of Business Development at Trigent Software. He enables businesses to adopt strategic outsourcing to make their processes and workforce more productive and improve ROI. A passionate advocate of digital transformation, he guides organizations on their journey towards digital maturity and excellence with a keen focus on QA.

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