Investing in information technology companies used to mean finding the right manufacturers to invest in and stick with them for the long run to make a profit. While the information technology industry is based on products that become obsolete before they come off the factory assembly line, the basic formula for success in investing in information technology has not changed very much for the last several years. But as specializing has started to creep ever more into the American business culture, and businesses start to become part of a global community, the information technology industry has seen significant changes over the past few years that are worth noting.
Part of investing in information technology is understanding how the landscape of the entire industry has changed. It used to be that only larger companies would outsource their information technology needs to subcontractors. But as the cost model for maintaining an information technology department has changed over the years, companies of all sizes have started to realize that investing in information technology subcontractors is something that makes a lot of sense. Smaller companies are starting to turn their information technology needs over to a third-party that offers quality service at a cost that saves the company money. It allows the small business to focus on its core competency and not have to worry about information technology.
These sorts of changes have turned investing in information technology from an equipment game to a services game. The biggest money is being put into companies that offer subcontractor services for information technology support. Companies are realizing that investing in information technology staff is no longer necessary and are outsourcing to American companies to get the job done. When the outsourcing is done with domestic companies, it can make investors feel a bit better about putting money into the subcontracting company. Changes in the foreign countries that currently subcontract support services may help to bring those jobs back to the United States.
Anyone who was investing in information technology call centers overseas is starting to see a shift back to American independent contractors. The foreign call centers are helping these countries develop a better standard of living. Now the workers want more money and it is taking the momentum out of investing in information technology foreign call centers. Economic changes all over the planet are affecting the way information technology is administered in the corporate world.