IT Outsourcing came to foray as a means for corporations to focus on critical business operations while having a specialized IT company take over the responsibility of managing the IT infrastructure and application development. For corporations especially in the developed countries, IT outsourcing provided two fold advantages, one was access to a highly talented pool of engineers and that too at a lower cost since countries like India were quickly growing their stature as an IT outsourcing hub.

IT Outsourcing is now as mainstream as ever and almost every leading organization outsources some or all parts of its IT infrastructure to a specialized company. It makes pure business sense and with tightening budget controls, IT outsourcing has become one of the strategic cost reduction driver for most organizations. Moreover, IT outsourcing is no more restricted to companies in USA & Europe outsourcing their IT projects to countries like India. Domestic companies within India itself actively use IT outsourcing including the Indian government like the India Post project given to TCS.

Is it then a no brainer that IT Outsourcing is critical to your business? Well, if it is cheaper and does not seem to have any inherent disadvantages why not!! Not really, IT Outsourcing despite proven benefits has its limitations and you should be cognizant be of the same before considering outsourcing your IT operations.

·         Limitations in estimating the actual cost of IT outsourcing:Let’s tackle the biggest driver of IT Outsourcing-Cost Savings. For anyone to estimate the cost savings from IT Outsourcing one needs to be able to predict the cost of outsourcing which then helps understand the cost savings from the same. Yes, at a higher level it is a matter of a simple $ per man-hour costs and IT outsourcing will appear to be cheaper in almost all cases. However, “hidden costs” are commonplace with IT outsourcing and it can be immensely difficult to accurately predict these hidden costs. For example, you need to be able to identify the costs of transitioning your in-house IT to an outsourcer, management overhead needed to manage the outsourcing relationship etc. In addition, IT outsourcing contracts are fixed at the start of the contract and as a result any additional requirement/change tends to be charged additionally. It is no surprise that IT requirements can change frequently and if your outsourcing contract doesn’t account for flexibility, you might be limited in the actual cost savings you might make. There is no surprise that there have been so many instances of IT outsourcing projects overshooting their budgets by a huge margin such as the one government shared services project going 500 million pounds over budget

In recent decades, companies have become remarkably different than what they were in the past. The formal hierarchies through which support staff rose towards management positions are largely extinct. Offices are flat and open-plan collaborations between individuals with varying talent who may not ever physically occupy a corporate workspace. Many employed by companies today work from laptops nomadically instead. No one could complain that IT innovation hasn’t been profitable. It’s an industry that is forecasted to rake in $351 billion in 2018, according to recent statistics from the Consumer Technology Association (CTA). A leadership dilemma for mid-level IT managers in particular, however, has developed. Being in the middle has always been a professional gray area that only the most driven leverage towards successful outcomes for themselves professionally, but mid-level managers in IT need to develop key skills in order to drive the level of growth that the fast paced companies who employ them need. 

What is a middle manager’s role exactly? 

A typical middle manager in the IT industry is usually someone who has risen up the ranks from a technical related position due to their ability to envision a big picture of what’s required to drive projects forward. A successful middle manager is able to create cohesion across different areas of the company so that projects can be successfully completed. They’re also someone with the focus necessary to track the progress of complex processes and drive them forward at a fast pace as well as ensure that outcomes meet or exceed expectations.

What challenges do middle managers face in being successful in the IT industry today? 

While middle managers are responsible for the teams they oversee to reach key milestones in the life cycle of important projects, they struggle to assert their power to influence closure. Navigating the space between higher-ups and atomized work forces is no easy thing, especially now that workforces often consist of freelancers with unprecedented independence. 

What are the skills most needed for an IT manager to be effective? 

Being educated on a steady basis to handle the constant evolution of tech is absolutely essential if a middle manager expects to thrive professionally in a culture so knowledge oriented that evolves at such a rapid pace. A middle manager who doesn't talk the talk of support roles or understand the nuts and bolts of a project they’re in charge of reaching completion will not be able to catch errors or suggest adequate solutions when needed. 

How has the concept of middle management changed? 

Middle managers were basically once perceived of as supervisors who motivated and rewarded staff towards meeting goals. They coached. They toggled back and forth between the teams they watched over and upper management in an effort to keep everyone on the same page. It could be said that many got stuck between the lower and upper tier of their companies in doing so. While companies have always had to be result-oriented to be profitable, there’s a much higher expectation for what that means in the IT industry. Future mid-level managers will have to have the same skills as those whose performance they're tracking so they can determine if projects are being executed effectively. They also need to be able to know what new hires that are being on-boarded should know to get up to speed quickly, and that’s just a thumbnail sketch because IT companies are driven forward by skills that are not easy to master and demand constant rejuvenation in the form of education and training. It’s absolutely necessary for those responsible for teams that bring products and services to market to have similar skills in order to truly determine if they’re being deployed well. There’s a growing call for mid-level managers to receive more comprehensive leadership training as well, however. There’s a perception that upper and lower level managers have traditionally been given more attention than managers in the middle. Some say that better prepped middle managers make more valuable successors to higher management roles. That would be a great happy ending, but a growing number of companies in India’s tech sector complain that mid-level managers have lost their relevance in the scheme of the brave new world of IT and may soon be obsolete.

IT jobs are without a doubt some of the highest paying jobs with information architects, data-security analysts and UX designers taking home $100,000 or more a year. But then again, these are high demand; high expertise jobs so don’t jump with joy as yet. But like every job and IT industry to be specific, not everyone commands such higher salaries. There are a large number of IT professionals who at some point of their career feel that their salaries have hit a standstill. Even if you are an IT professional and a great one at that, your technical expertise alone may not help you exceed the IT earning barrier. To continuously exceed your salaries, you need to work hard and smart. Here is how you can exceed the earning barrier in IT.

·         Gain Business Knowledge and Move Up The Management Ladder: IT departments for the most part are considered a part of “back office” operations. What this means is that despite being a core part of the business, IT professionals do not often get enough say in revenue generating components of the business and as a result seldom have a chance to take up senior management roles.  So if you do not want to stay content with a project manager or senior project management salary, invest time and money in gaining business knowledge. It could be through a formal business degree, online training courses or just by keeping your eyes and ears open while in the organization. Having the technical experience with business knowledge will instantly make you stand apart and open the doors for you to draw senior management salaries. For example, a survey conducted highlighted that CIOs were the biggest salary winners which clearly demonstrates the value of technical and business knowledge

·         Gain expertise on the “Hot” Technologies and Keep Learning: Say you are an expert in Java and draw a respectable salary in the industry. However, someone with less years of experience than you joins the organization and draws a higher salary than you! Why you ask. It could very well be because he/she is an expert in say big data technology such as Hadoop. Information Technology is one of the most dynamic industries with new technologies and languages coming up every now and then. When a new technology comes to the foray and gains traction, there is an instant demand-supply gap created which means that those with the specific skill sets are in a position to demand high salaries. If you have to break the IT earning barrier, always be ready to reinvent yourself by learning new technologies and this way you will be well positioned to jump on the high paying opportunities in the IT industry

·         Work On Your Own Side Projects: This one might seem controversial but let me clarify that I do not mean doing freelance work because even though your organization may never find out, it is ethically in breach of contract with your contract. If you have been lucky enough to be trained in some web based technologies such as Java, .NET or even HTML etc. spare sometime after office to build your own side projects. They could be very small projects tackling some problem that only you might have but there are multiple benefits of developing side projects. Worst case scenario, you will improve your technical skills. On the up side, you might end up creating your own business. A lot of technology start-ups were actually side projects the founders tinkered on with while they were employed full-time. You may not always succeed but there is no downside to the same

Before we go to the list do you know what makes software skills most sought-after and hence more valuable than most of the other job skills? It is simply because unlike any other skill, software skills are global and are not at all location specific! With the evolution and penetration of internet technologies, the physical distance between the client and service provider hardly matters. So, with more advancement in technology, it is indeed going to rain opportunities on the right skilled developer. I’ll take the liberty to reproduce the following quotes here to prove my claims statistically:

Demand for “cloud-ready” IT workers will grow by 26 percent annually through 2015, with as many as 7 million cloud-related jobs available worldwide.

---IDC White Paper (November 2012).

In the United States, the IT sector is experiencing modest growth of IT jobs in general, with the average growth in IT employment between 1.1 and 2.7 percent per year through 2020.

---U.S. Bureau of Labor Statistics.