IT Outsourcing has been proven to be a huge help to businesses over time. After the initial shock and disruption, the Outsourcing industry has stabilized and adapted to the challenges presented by changing global circumstances. As the medium-long term effects of the pandemic are starting to become clear, significant trends are beginning to emerge, presenting opportunities for both outsourcing providers as well as clients. As a business owner, you need to stay updated with all the new outsourcing trends to be able to maximize your resources. Let’s dive right in!
IT OUTSOURCING IN 2021: KEY INSIGHTS
According to the IT outsourcing statistics by Technavio, the value of the IT outsourcing market is expected to reach $486.16B by 2024 growing at 5% during 2020–2024.
The majority of organizations across sectors are accelerating their digital transformation, especially fintech, healthcare, and telecom. Businesses in these industries are following IT outsourcing trends and are the most likely clients who are searching for IT outsourcing services.
Cloud technology is on the rise. Companies will increasingly outsource the migrations, maintenance, security, compliance, and day-to-day troubleshooting related to the cloud. According to Gartner, cloud system infrastructure services are expected to grow from $44B in 2019 and reach $81B by 2022.
The crisis caused by the global pandemic has impacted IT outsourcing trends in 2021. It has a significant impact on business decisions and technology investments planned for 2021. A growing number of companies of different sizes plan to increase their use of IT outsourcing. From our experience, we can also confirm this trend. If at the beginning of the pandemic some of our clients scaled-down the teams or froze IT outsourcing, a few months later they resumed IT outsourcing and even scaled up development teams. Many of those who have never outsourced, plan to do it for the first time in 2021.
TOP 5 IT OUTSOURCING TRENDS IN 2022
1. The rise of Blockchain Services
Blockchain is one of the most exciting IT outsourcing trends at the moment. As per Statista, global blockchain spendings are expected to reach over almost 18 billion U.S. dollars by 2024. Blockchain is a distributed, encrypted database model that has the potential to solve many problems around online trust and security. The endless developments, over the years, have taken us a step closer to a decentralized, trustworthy internet, where transactions are transparent and more secure. Moreover, various studies have revealed that implementing blockchain will help multiple sectors save costs, improve efficiency, and boost overall performance.
Outsourcing Blockchain development will provide a cost-efficient solution for startups, SMEs rather than building your own in-house developers. Thus, choosing the right IT outsourcing company is crucial, you have to research carefully: engagement models, cost-efficiency, developers’ skills…
The benefits of Outsourcing Blockchain development are undeniable:
- Streamlined & optimized development processes
- Better TTM (Time To Market) index
- Easier & faster workforce scaling
- A rich list of tools & technologies
2. The high demand for Full-Stack Developers
The demand for full-stack developers is going through the roof. Full-stack developers are familiar with each layer of the technology stack, so they can create an entire functional prototype of an application without any outside help. This makes them especially valuable for startups that need to release a minimum viable product (MVP) as soon as possible and polish it later. Full-stack developers can jump from one part of the product to another, allowing startups to keep their overhead minimal.
Because full-stack developers can work on each layer of an application, they spend more time together, which helps create chemistry within the company. An experienced team of full-stack developers who know one another can be significantly more productive and agile than a much larger team of specialists who work in small, siloed units.
It is because they are familiar with every part of an application, including the front-end and the databases. This expertise allows them to always be on their toes and be agile.
3. The potential of Progressive Web Apps
Progressive web apps allow startup companies quickly and easily develop and distribute a progressive web app and benefit from the minimal time and money needed to roll out the app in the case of limited resources. Encouraging first-time users to revisit the application and getting them engaged with the help of push notifications and in-app banners make PWAs a powerful tool for marketing strategy implementation.
The critical benefits of PWA:
- Availability in the offline mode
- Mobile-like behavior
- Smooth installation
- No app store submission
- Use of hardware features
4. Increase focus on Artificial Intelligence
AI is one of the top outsourcing trends in the IT industry. Businesses that want to stay ahead of the competition invest in automating their business processes. Statista predicts that the AI software market will grow and reach $126 billion by 2025.
This process involves using software robots to replace humans with calculations, analysis, and report generation. Rather than worrying about how to build their own AI automated systems for data analytics, businesses would outsource it instead. That’s why outsourcing companies should also be ready to provide business intelligence services.
Another trend in AI is how it works with cloud computing. The evolution in the development and use of AI in computing is built on machine learning. AI can now be trained to predict success using old data and give suggestions on how to improve processes.
With companies spending more and more money to stay ahead of their competition, it is no surprise that they have started investing heavily in AI technology. The increased focus on artificial intelligence and automation technology is a great opportunity for outsourcing providers.
5. Cloud Services are becoming popular
Cloud has become an essential tool today. Businesses are increasingly partnering with vendors that offer cloud-based software services or assist in transferring their existing infrastructure to the cloud. Additionally, Statista revealed that the cloud computing market increased worldwide and is expected to reach $482 billion by 2022. Not long ago, businesses would be wary of shifting to the cloud due to skyrocketing upfront costs. But that is not the case anymore. Contemporary organizations have finally realized the plethora of advantages they can avail of by outsourcing cloud-based IT services.
As we can see, 2022 will be an interesting year full of new opportunities for both companies and IT outsourcing providers. Companies always have to catch up with the trends as well as understand your company’s business goals to make the right decision. We have already given you the overview of 2022 outsourcing trends, your next step is to define your objectives clearly and do deep research about these solutions, then pick an IT Outsourcing company.
Inspired by what we wrote? Feel free to visit Spirit Labs for more information and if you have any idea willing to discuss with us, do not hesitate to contact us via: firstname.lastname@example.org, and together, we will make your imagination become a real thing!
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