According to recent studies, the worldwide IT outsourcing market is forecast to grow at a compound annual growth rate (CAGR) of 6.6%, reaching a value of $ 1.06 trillion by 2027. With businesses of all sizes looking for ways to cut costs and improve efficiency, it’s no wonder that outsourcing has become such a popular option.
The global pandemic has been a game-changer for businesses across all industries, and the IT outsourcing landscape is no different. In the past year, we’ve seen an increase in remote work, artificial intelligence (AI), and automation technologies as businesses look for ways to adapt and stay competitive.
This growth is driven by the continued advancement of digitalization and the ever-changing landscape of the IT industry. So, what trends are driving this growth? And what does the future hold for IT outsourcing? We’ve rounded up the top trends that will shape the industry in the coming years.
1. Increased use of remote work
The pandemic has forced businesses to reevaluate their workplace strategies, with many companies opting to allow employees to work remotely permanently. This shift has significantly impacted the IT outsourcing industry, with businesses now looking for vendors that can provide remote services.
During the pandemic, we’ve seen a surge in collaboration tools such as Zoom and Microsoft Teams. There has also been an increase in the adoption of cloud-based storage and file-sharing solutions.
Simultaneously many companies began outsourcing tasks such as IT support, software development, and data entry to staff working remotely. This trend will likely continue in the coming years as businesses look for ways to cut costs and increase efficiency.
2. Artificial intelligence (AI) and machine learning
As the world returns to some semblance of normality, businesses are looking for ways to make their operations more efficient and cost-effective. They’re doing this by turning to artificial intelligence (AI) and machine learning.
These technologies are used to automate customer service, data entry, and marketing tasks. AI can also be used to improve decision-making accuracy and identify patterns and trends that would be otherwise undetectable. The use of AI in the IT outsourcing industry is still in its early stages, but we expect to see it become more prevalent in the coming years as businesses look for ways to gain a competitive edge.
3. Automation
The continued advancement of digitalization is driving the need for businesses to automate their operations. IT outsourcing vendors can provide a wide range of automation services, from simple task automation to more complex process automation.
Automation can help businesses improve their efficiency and accuracy and free up employees to focus on more strategic tasks. It can also help to improve the customer experience by providing faster and more consistent service.
4. Cloud computing
Cloud computing has been one of the most significant trends in the IT industry in recent years, and its impact is being felt in the outsourcing space. The cloud provides a flexible and scalable way for businesses to access IT resources, becoming increasingly popular. As a result, many businesses are now opting to outsource their IT infrastructure and applications to cloud-based providers.
The cloud offers several benefits for businesses, including reduced costs, increased flexibility, and improved scalability. As a result, we expect cloud-based IT outsourcing solutions to continue to grow in the coming years.
5. Big data
Big data is another trend driven by the continued advancement of digitalization. Businesses are now collecting and storing more data than ever, turning to IT outsourcing vendors to help them make sense of it.
Big data analytics can be used to improve decision-making, identify patterns and trends, and generate insights that would be otherwise undetectable. It’s a powerful tool used by businesses in many industries, and we expect its use to continue to grow in the coming years.
6. Cybersecurity
As the world becomes increasingly digital, so too makes the threat of cybercrime. Businesses are now more reliant on technology than ever before, making them a target for cybercriminals. As a result, cybersecurity is now one of the most important considerations for businesses when outsourcing their IT operations. They must ensure that their vendor can provide a secure and reliable service.
Also, businesses need to be aware of the potential for data breaches when outsourcing their IT. Therefore, they must ensure that their vendor has adequate security measures to protect their data.
7. Digital transformation
Digital transformation is a broad term that uses digital technologies to improve business operations. It’s an ongoing trend driven by the continued advancement of digitalization.
Many businesses are now turning to IT outsourcing vendors to help them with their digital transformation initiatives. They’re looking for vendors that can provide a wide range of services, from simple task automation to more complex process automation.
Digital transformation can help businesses improve efficiency and accuracy and free employees to focus on more strategic tasks. It can also help to improve the customer experience by providing faster and more consistent service.
8. Internet of Things
The Internet of Things (IoT) is a network of physical devices, vehicles, and home appliances connected to the internet and can share data. It’s a relatively new trend driven by the continued advancement of digitalization.
The IoT is already having a major impact on the IT outsourcing industry. Although the full potential of the IoT is yet to be realized, we expect it to play a major role in the future of outsourcing.
9. Blockchain
Blockchain is a distributed database that allows for secure, transparent, and tamper-proof transactions. It’s a relatively new technology often associated with cryptocurrencies, such as Bitcoin.
However, blockchain has many potential applications beyond the financial sector. It’s already being used in several industries, including healthcare, supply chain management, and government. We expect the use of blockchain to continue to grow in the coming years, particularly as more businesses begin to explore its potential applications.
The Bottom Line
The IT outsourcing industry is constantly evolving, and several trends are expected to shape it in the coming years. These trends include the continued growth of big data analytics, the increasing importance of cybersecurity, and the rise of digital transformation. Therefore, businesses must be aware of these trends when outsourcing their IT operations.
