The Future of IT Outsourcing: Trends and Predictions Trends and Benefits of Outsourcing IT Consulting Services

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Additionally, companies should partner with educational institutions to ensure that students are trained in the necessary skills and knowledge to fill IT outsourcing roles. The answer is a greater need for skills and a larger role for software acumen. Despite all these challenges, there are lots of companies ready to invest in technology in 2023. Countries like India, China, and the Philippines are home to some of the world’s most talented and cost-effective outsourcing professionals. As more businesses outsource their information technology requirements, these countries and a few others will keep adding new talents to their teams.

Some spheres suffered losses that made 114 million people worldwide lose their jobs in 2020, while other industries like IT outsourcing and offshoring managed to thrive. IT services exports in Ukraine alone reached $5 billion in 2020 – an over 20% increase compared to 2019. Max Nirenberg, CRO and CEO at Commit USA in northern America, claims that intelligent IT outsourcing will become critical soon.

Bridging distances: Effective communication strategies for remote teams

The demand for MSPs is so high that it was worth $152.02 billion in 2020 and will grow to $274 billion by 2026, as per Statista. Business and outsourcing companies use Artificial Intelligence to automate repetitive tasks, calculations, or replying to messages. RPA is software development that helps build, deploy, and manage robots to carry out simple tasks. Companies now emphasize providing high-quality services to their customers. You’ll need to know relevant outsourcing trends to develop a successful strategy.

  • The demand for MSPs is so high that it was worth $152.02 billion in 2020 and will grow to $274 billion by 2026, as per Statista.
  • Machines, apparatus, equipment, and other devices are included in this category.
  • Companies are also struggling to keep up with the rapid pace of change in the IT industry, making it even harder to find qualified professionals to fill positions in IT outsourcing roles.
  • PWAs are web applications that provide users with an application-like experience using a  web browser.
  • And they recommend IT specialists who can quickly fix typical concerns in the system with a high level of expertise.

For instance,, a USA-based software product company that develops a machine learning platform for sales among B2B businesses, was one of such companies. They were in need of operational it outsourcing trend functions and contacted our team to receive them. After that, we established the offshore development office of in four weeks and recruited more than 25 developers for them.

An extensive set of technologies

But with the skills shortage comes some additional challenges for the business. Blockchain technology is already disrupting the financial services industry. But in the coming years, it will have a similar effect on other sectors, including software development outsourcing.

This explains the need for experts in the field with decentralized apps (dApps) and software engineering in cryptography projects. Cloud-based advancements will enable teams to have the tools to remain productive. As more workforces shift into a remote setup, this technology will help businesses collaborate better. It is important to include security as information is being shared remotely.

We are always looking to hire talented individuals with equal and extraordinary proportions of industry
expertise, problem solving ability and inclination. Download the full report to explore detailed findings and analysis, insights from executives, and takeaways on how you can enhance your sourcing model to unlock immediate and long-term business value. Selecting whether to deliver capabilities internally, with third parties, via global in-house centers, or through a combination of the three is not easy. Making a decision requires an ecosystem management view beyond traditional vendor management.

it outsourcing trend

This combination creates a unique platform for generating, storing, and leveraging data. Ultimately, these developments enable organizations to develop innovative solutions to enhance their business. In particular, in the outsourcing industry, it has been predicted that robotic process automation (RPA) will continue to grow at an explosive rate. RPA is a type of software that can execute tasks and jobs typically done by humans. RPA can answer customer queries more quickly with fewer errors than humans and can also handle repetitive tasks like invoice processing or data entry. Not only are companies able to automate system processes, but they can also outsource parts of their business processes remotely.

Tips on Outsourcing Software Development

PWAs are ideal for businesses that want to reach users who don’t want to download too many apps. Developing web apps is easy since developers don’t need to work on complex code. Rather they use a simple interface or low code platforms to deliver these types of applications. Businesses can now achieve their goals faster and meet their client’s demands. With the IT talent shortage in the US, many businesses are looking to hire elsewhere.

it outsourcing trend

However, the number of professionals continuously grows; hence, it becomes easier to find appropriate human resources. No matter what industry you’re in, it’s important to stay up-to-date on the latest trends and technologies. The popularity of remote work is increasing as more and more people discover its benefits.

Cybersecurity and Data Privacy

As a result, businesses in many sectors are expected to look for IT service providers with experienced cloud engineers and developers familiar with cloud infrastructure and management. These professionals will assist companies in preventing cloud bill shock and ensuring the safety of their data. Despite, or perhaps because of the COVID-19 pandemic, the percentage of the budget IT departments spend on outsourcing will continue to rise by about 8 – 9%, based on the previous number of 2019 and 2020. These IT outsourcing trends will transform the IT industry for good and make companies stick with them for a long time. Outsourcing is a business model in which a company involves talent from other companies for corporate resources. The idea of outsourcing is delegating particular tasks, processes, or projects in software development to a party outside a company.

AI also gives businesses more control over their data and processes, allowing them to integrate all aspects of their operations seamlessly. IT Outsourcing Services are being used by an increasing number of businesses, especially in the digital transformation era. The global IT outsourcing market’s revenue skyrocketed in 2022 and is expected to reach US$430.50 billion in 2023 (Statista). According to the Commit reports, outsourcing for software development in startups will grow an astonishing 70% from 2022 to 2023. At the same time, medium-sized companies and enterprises require support in software development to swiftly increase the return on investment and quality of client service.


Big data analysis also allows organizations to make more informed decisions regarding their operations with insights derived from a variety of sources. With these benefits, the Big Data Analytics market is anticipated to reach $103 billion in 2023 (Techjury). AI automation is now quicker and more accurate in delivering insights to help firms remain competitive while saving expenses. As a result, more organizations are utilizing AI products to streamline their business processes. Some IT outsourcing service providers also allow clients to pay a fixed monthly fee for a system maintenance service, giving your firm predictable expenses. As for IT outsourcing providers, your IT team might be experiencing this pressure.