The Future of IT Outsourcing: Trends and Predictions

The Future of IT Outsourcing: Trends and Predictions

The last few years have been full of barriers and challenges. The global pandemic COVID-19 and the Russian-Ukraine War 2022 have left many businesses in the lurch, demonstrating that we live in an era of uncertainty and ongoing progress. So, when the brick-and-mortar businesses worldwide effectively shut down in 2020 due to the global lockdown, the only ray of shine companies had to keep their services running was to quickly adopt digital transformation.

According to the PwC Pulse Survey, 60% of executives have confirmed that digital transformation is their most crucial growth driver. Therefore, to keep pace with the current trend and be future-ready, enterprises across the globe are looking for proven strategies to ensure the uninterrupted and faster delivery of their products and services, and one effective way is outsourcing IT consulting services. These services offer multiple benefits to businesses across industries, including cost efficiency, speedy processes, enhanced security, etc.

This blog will explore some of the major IT outsourcing trends gaining widespread attention in 2023.

The Emerging IT Outsourcing Trends in 2023

Outsourcing is a new normal across industries but is most prevalent in the IT sector, where more than 94% of businesses adopt some form of outsourcing. In the US alone, approximately 30% of organizations outsource at least one part of their businesses.

As global IT outsourcing continues to grow, forward-thinking businesses must stay up to date on the latest trends and predictions to ensure their ongoing success. Let’s explore some of the emerging trends and predictions in IT outsourcing, which will likely shape the future of global businesses in 2023 and beyond.

Machine Learning Automation

Machine learning is one of the significant IT outsourcing trends to look out for in 2023 and beyond. It has limitless use cases and advantages, particularly in the IT landscape, enabling organizations to streamline their processes and upgrade services to recognize problems and take proactive actions immediately.

The Ongoing Adoption of Blockchain Services

The BFSI market is already witnessing the transforming power of blockchain technology, and in the coming years, it is expected to have a more revolutionary impact on other industries, such as healthcare, education, and software development. This distributed tech trend helps companies to secure their sensitive data on numerous machines. As more industries embrace the potential of blockchain technology, the demand for outsourcing blockchain services will only increase in the coming years.

Artificial Intelligence Automation

Even if the use cases of artificial intelligence are deep-rooted in the corporate world, it is getting more sophisticated with each passing year. It means modern AI applications like chatbots, personal assistants, etc., can automate more processes and reduce human intervention than ever before. Unsurprisingly, the demand for outsourcing AI services will increase in the future.

The Widespread Acceptance of Remote Employment

Since the global pandemic has hit the world, working remotely has become the new normal, increasing the need for advanced technologies to facilitate smooth communication and increase productivity. Undoubtedly, the remote work culture is a rapidly expanding phenomenon, making businesses consider outsourcing IT services to handle the escalating demand.

Prevalence of Cloud Computing Trend

According to Grand View Research, the global cloud computing market was valued at $483.98 billion in 2022 and is estimated to grow at a CAGR of 14.1% from 2023 to 2030. Undoubtedly, the demand for cloud computing services will only increase in the future, and businesses will progressively adopt IT consulting services for assistance. By outsourcing IT services, companies can delegate the responsibility of their cloud environment to third-party suppliers, which enables them to focus on more critical aspects of operations requiring their attention.

Cybersecurity and Data Privacy

As an increasing number of organizations are migrating their IT network to the cloud, the demand for outsourcing IT company that provides cybersecurity and data privacy services will increase. A reputed IT company uses robust security measures to secure users’ data and IT infrastructure from the malicious attempts of cybercriminals. They comply with industry specific regulations such as GDPR and CCPA to actively monitor and secure sensitive information.

IoT Opens Up New Opportunities

The Internet of Things (IoT) is projected to be one of the biggest breakthroughs of the coming decade, giving limitless reasons to businesses to outsource IT services. From connected devices to autonomous vehicles, IoT has transformed the way we do our day-to-day activities. As the IoT is gaining immense traction worldwide, the demand for outsourcing IoT services is estimated to grow exponentially in the near future. It will include everything, from system integration to software development and beyond.

eCommerce and Trading Automation

According to Statista, the online trading market is constantly growing and is estimated to reach 8.1 trillion dollars by 2026. As the COVID-19 pandemic has given a boost to online shopping, there is a trend in the modern business world to create an online marketplace, eCommerce websites, shopping applications, and other technology-advanced solutions. And to create such systems, entrepreneurs prefer to outsource IT services that allow them to get high-quality services at a fraction of the cost.

These are a few of the most popular IT outsourcing trends of recent years, which are expected to grow exponentially in the coming decade. No matter which of these IT outsourcing trends you embrace and which one you skip, the key to successful business transformation lies in finding the best IT consulting services for your specific needs. Once you find the perfect tech partner for all your IT requirements, you can enjoy all the benefits of outsourcing and take your business to greater heights.

Final Thoughts

With the ever-evolving trends of AI, IoT, machine learning, cloud computing, etc., the future of outsourcing IT services seems to be promising in the coming years. These services empower organizations to secure their sensitive data, boost up productivity, speed up service delivery, and focus on their area of expertise while staying ahead in the current digital landscape. By keeping pace with the digital transformation, companies can harness the full potential of emerging technologies and make informed decisions to keep their business thriving.

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