2023 IT Outsourcing Trends: Key Drivers and Challenges

30% of businesses plan to develop training aids to support remote employees. 44% of businesses have already or plan to accelerate digital transformation. Before the cooperation started, companies should review the way IT outsourcing companies manage data and make it secure.

it outsourcing trends

With the increased threat of cyber-attacks, IT outsourcing providers may need to emphasize cybersecurity measures to secure their clients‘ data and systems. Digital advancement continues to shape the pace of innovation as technology is evolving rapidly and the demand for custom software development rises every year. As a result, we see increasing interest in software development outsourcing from organizations.

Tech Stack

Outsourcing that involves hiring third-party vendors to handle business-related operations. For example, accounting services, billing services, and payroll services, to name just a few. In addition to lower fixed costs, companies search for technological expertise to shore up business tools and back-office tasks. This will allow organizations to focus on several aspects to make their core business as profitable as possible. Additionally, outsourcing can provide cost savings and operational efficiencies, freeing up resources that can be invested in enhancing the customer experience. Businesses that adopt the cloud will be more worried about cybersecurity and will try to avoid all threats by opting for outsourcing security services.

it outsourcing trends

The spending on developing solutions using the blockchain, which is 6.6 billion dollars, is predicted to be 19 billion by 2024. Although FinTech is operating blockchain the most actively, it is also used in solutions for logistics, healthcare, real estate, etc. As the IoT gains greater traction, the best IT outsourcing company will expand its range of IoT-related services. As more IT outsourcing companies become aware of this potential, demand for blockchain outsourcing will increase.

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These professionals will assist companies in preventing cloud bill shock and ensuring the safety of their data. By analyzing IT outsourcing trends, we can say that more and more companies plan to migrate from on-premises to cloud-based data storage. Cloud computing can ensure better data protection, faster data operations, and the ability to modernize business processes by easily implementing various business applications. Banks and insurance companies have been among the quickest players in the market to react to this development. The range of outsourced value-creation processes is growing and is, in some cases, extending to core business processes such as lending.

  • These requirements create an overwhelming demand for cybersecurity professionals, increasing the shortage of qualified individuals.
  • The developers work directly with their UK management while being on the Latvian vendor’s payroll.
  • As such, enterprise IT organizations are increasingly engaging with specialist IT providers that bring technology- or function-specific domain expertise to the table.
  • Each company must determine whether the advantages outweigh the disadvantages.
  • Even a slight data breach could result in a massive loss to the firm while immense profit to rival.
  • For example,your company could be using blockchain to track the movement of goods in its supply chain in real-time, reducing the risk of fraud and errors along the way.

Always eliminate outsourcing IT companies that don’t have a track record of successful projects and delivery timelines. This is the first and foremost factor you should consider when choosing an IT outsourcing company. This security is attractive for companies seeking to outsource IT functions or cloud storage.

Strategic Global Partnerships

Generally, the next years will show that setting up successful partnerships between outsourced developers and enterprises is going to matter as much as the innovativeness of IT outsourcing vendors. Quality assurance is a process that aims to ensure the security and quality of the software under development. The study tracks the regional and country-level market demand for IT outsourcing and provides detailed coverage of the major end-user trends affecting adoption. In addition, the countries of this region have diverse industry expertise that ranges from business and financial services to healthcare, education, and telecommunications. By choosing a vendor with impressive expertise and satisfied customers, you make a huge contribution to the development of your business.

However, it does not guarantee the high quality of the final product and convenience in cooperation. When a firm constantly changes terms and operating procedures, chances are high that its productivity and ability to forecast vital business indexes will decline drastically. Some outsourced IT services allow companies to pay a set amount each month. Additionally, labor costs specifically may be reduced as companies can eliminate or greatly reduce the hiring process. Outsourced IT providers typically have their own procedures for hiring IT professionals and managing their careers, salaries, vacations, education, and other HR matters. The digitization of services, automation of processes, and increasing demand for remote working will drive businesses to outsource more IT services.


Onshore software development is hiring a software development company within your country. This model is most frequently chosen in cases when there is an already established in-house team involved in the project so that there is no risk of default in communication. The latest augment in technology, and software has now made it possible for the staffs and employees to work as employees with a firm. The availability of project management tools and other efficacious programming has made the process of real-time monitoring quite simple and easy.

Which of these outsourcing trends will you follow and what do you think are the future trends in outsourcing? The majority of companies choose outsourcing because it’s much cheaper than building an in-house team. This is dictated by the reduction in expenses for recruitment, office space, equipment, insurance, vacations, and corporate events. IT vendors offer various cooperation models, but what works well for a small project with clear specifications may not be suitable for a long-term project with changing outcomes. To determine the most appropriate outsourcing solution, customers should consider factors such as project scope, budget, timeline, desired level of involvement, and requirements. This evaluation will ensure they choose an outsourcing model that is well-suited to their needs.

Guide to Software Testing Outsourcing for Businesses

In fact, outsourcing non-core business tasks is often more cost-effective. This reduces stress, saves money, and allows companies to allocate their https://globalcloudteam.com/ time toward their strengths. According to another research held by ISG, 92% of the top 2000 global companies use IT outsourcing services.

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