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Home Corporate News Corporate News To overcome the IT crisis, companies should change their mindset and move towards strategic partnerships
Corporate
2 minutes reading

To overcome the IT crisis, companies should change their mindset and move towards strategic partnerships

Romania's IT market is undergoing a period of transformation, and the traditional outsourcing model, which relies on human resource outsourcing, is starting to reveal its limitations. In today’s economic climate, IT companies need to rethink their approach and evolve beyond merely providing services, especially as costs begin to align with countries like Poland, Spain, Greece, and other European states. In such a competitive market, what added value can a Romanian company bring to both its local and international clients? Transitioning from outsourcing to product development, consulting, and assuming a role as a strategic partner can offer significant value for both providers and clients.

Florentina Sima

Florentina Sima

ro November 5, 2024

For many years, the outsourcing model has been a convenient solution for companies needing short-term IT resources. This model has generated stable profits for service providers, but has also limited innovation and long-term engagement. In the classic body-leasing scenario, IT companies provide clients with specialists for specific periods without taking significant risks regarding the project’s success or viability. This approach has often resulted in projects with unforeseen additional costs, missed deadlines, and a lack of control over final results.

Outsourcing companies now have the opportunity to evolve into proactive, strategic partners for clients, offering much more than temporary labor. The “fixed price” model, for example, involves shared risk and responsibility, providing greater transparency around costs and delivery timelines.

Lucian Popovici, Engineering Director at Cegeka, explains: “From our experience, we’ve seen that the fixed price model, in addition to cost and delivery predictability, allows clients to focus on their strategic business goals. By transferring IT responsibilities to a partner, clients can concentrate on revenue growth, while technical aspects are handled by specialists. This type of collaboration significantly increases efficiency and strengthens mutual trust, providing a stable and sustainable framework for both parties.”

Through such partnerships, outsourcing companies bring knowledge and innovation directly into the client's ecosystem, using Agile methodologies that ensure flexibility and rapid adaptation to market changes. This approach fosters a long-term relationship focused on results, consistently aligned with the client’s strategic objectives.

A study by the German Association of IT and Telecommunications Companies reveals that an overwhelming 75% of IT projects fail to meet business expectations. Although many projects start with promising ideas and dedicated teams of specialists, this does not automatically guarantee the viability of the concept. Reasons for failure are varied: lack of communication, misaligned objectives, insufficient planning, lack of coordination between teams, and inaccurate market evaluation. Such an approach often leads to wasted time and money, as well as missed delivery deadlines.

After receiving numerous positive client feedbacks, Cegeka transformed its Discovery Phase service into a product with clear deliverables and a positive impact on clients' projects. This process allows for a detailed assessment of the project before implementation, ensuring a shared understanding of objectives, resources, and risks. Most importantly, the Discovery Phase offers clients predictability, scalability, and much better management of expectations.

During the Discovery Phase, Cegeka’s consulting team collaborates in an iterative, consultative process with the client's key departments to identify actual needs and offer tailored solutions. This process includes organizing workshops and repeated feedback sessions, continuously incorporating the client’s suggestions and observations. This approach helps define the project’s goals, estimate costs, and identify a realistic implementation schedule.

Cegeka’s approach ensures that projects align with the client’s business strategy, reducing the risk of failure due to incorrect initial assessments. Thus, the Discovery Phase becomes not only a necessary step, but a strategic investment that delivers long-term value.

In conclusion, there should be a mindset shift across the market, encouraging outsourcing companies to focus on product development and innovative solutions, especially in an increasingly competitive environment. In a world dominated by emerging technologies such as Artificial Intelligence, IT companies have the opportunity to deliver more value by proposing technology solutions that transform clients' businesses,” concludes Lucian Popovici.

 

Florentina Sima

Florentina Sima

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