Software development

Pros, Cons, And New Trends In It Outsourcing In 2023

Andela announced that it would accept engineers from all African countries, expanding its presence from six countries to the entire continent. COVID-19 was a tipping point for the global adoption of work from home practices. Today, more than half of the U.S. workforce holds a job IT outsourcing trends that is compatible with remote working. And chances are high that around 25-30% of employees will work remotely multiple days a week by the end of 2021. Of course, there are more reasons why businesses outsource, but the ones listed above are the primary drivers of this practice.

Therefore, businesses rely on outsourcing teams instead of creating an in-house team for security and technology management. The best cybersecurity services involve network monitoring and extending IT helpdesk support. In addition, cybersecurity providers make sure your business is equipped to meet security challenges. AI has enabled businesses to automate processes that previously required manual labor. It has also introduced companies to data science and analytics, allowing them to make data-driven decisions. While AI can offer a competitive advantage to businesses, it requires skill and practical knowledge to provide AI-driven services.

Global It Spending Is Expected To Grow

AI services will become more popular in the next few years, and outsourcing companies will provide them alongside traditional IT solutions. RPA is also high on the list of essential outsourcing trends of software engineering 2022. The global IT industry has evolved and becomes more complicated, requiring enterprises to meet the demands of their users both locally and globally. This is where outsourcing is a feasible option, as it’s nearly difficult for a single company to handle everything independently.

IT outsourcing trends

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. A study by Gartner found that businesses spending on cloud services went up to 6.3% in 2020. They predict a year-on-year growth of 18% only for cloud computing services.

everything Has Collapsed: Russias Draft Tanks Small Businesses

Companies these days consider more than simply price when selecting a software outsourcing partner, as talent in many places is on the rise. Customer service professionals might spend more time supporting consumers because of automation. They save time by eliminating manual processes and inefficient working methods. Hire developers exceling in both traditional practices and recent trends in technology from the best enlisted professionals at ITOS. The best way to find a good IT outsourcing company is by asking friends or business acquaintances for recommendations. However, if you have no such contacts at your disposal, you can look for companies online and compare their features and pricing.

Outsourcing statistics, Eastern European countries like Ukraine, Poland, Belarus, and Romania will give them a run for the top position. According to the IT Ukraine Association and Sayenko Kharenko law firm, none of the questioned IT companies has moved abroad wholly. Hence, Ukrainian vendors stay in place and demonstrate courage and flexibility under unexpected circumstances. Consequently, in 2023, the high trust credit will reinforce IT outsourcing in Ukraine. Russia started a full-scale war against sovereign Ukraine, which undoubtedly affects the entire world. You can cooperate with people from different parts of the world with outsourcing.

Offshoring vendors, on the other hand, are ready to supply you with a whole development branch that may consist of programmers, QA engineers, UI/UX designers, product owners, and others. Besides, offshored developers in Ukraine become a part of your company and are determined to adopt your values and corporate culture. This in turn contributes to productivity and improves development processes. IT outsourcing to Ukraine and other countries fulfills certain company goals. On the other hand, it might result in insufficient dedication from engineers, intellectual property rights infringement, hidden costs, or even a potential loss of internal expertise.

All of the wireless technology, powered by 5G, have benefited the healthcare staff with utmost convenience. On-premise storage for data management has shown weakness and limitations, hence the IT outsourcing trend in shifting to cloud services. As in the first phases of the pandemic in 2020, every aspect of the IT service was declining, but it began to take the initial steps for a huge growth in the years coming. For example, after contracting 4.6% in 2020 to $490 billion, worldwide IT spending on consulting and implementation services are predicted to experience a 4.5% CAGR through 2024. While worldwide spending on IT-centric managed services, infrastructure, and application support, which decreased 1.1% in 2020 to $475 billion, will see a CAGR of 5.3% through 2024.

While some technologies are underutilized, such as experimenting with blockchain and implementing it to secure data transmission, others are already widely used by outsourcing companies. For small or medium-sized businesses, the availability of highly trained technicians is easier with IT operations outsourcing. By employing multiple dedicated IT professionals, the larger companies cannot always find technology generalists to leverage upgraded network maintenance and security.

It Outsourcing Trends 2022 Infographic

When data is stored on a cloud, it might lack protection from ransomware, breaches, phishing, and other cyberattacks. It’s especially common in public clouds where several companies store their data on the same cloud. Even though cybercrime is causing the business sector a lot of damage, cyberattacks are more frequently targeted at governments. According to the 2020 HLB Cyber Security Report, 65% of British tech businesses were breached or exposed during the lockdown period. Zion Market Research expects the cybersecurity market to be worth $181.77 billion in 2021. By 2022, the market for cyber insurance is predicted to reach $20 billion.

This means that more organizations are open to hiring anywhere in the world. Companies now have access to a global workforce, and job seekers are more confident in sending applications to different locations. It is imperative that your outsourcing partner values security as much as you do. Outsourcing companies have systems in place to protect their and their client’s data. This entails the employment and training of qualified individuals regardless of gender, disabilities, or social status. In outsourcing, businesses could save on hiring and employment costs.

IT outsourcing trends

Hence, there are delays in the entire project since finding the reason for an issue within the program or application is complex. Outsourcing as a business model is an excellent solution for accelerating development progress. By outsourcing particular stages or entire projects, companies can reduce the load on their professionals, thus increasing their efficiency. At the same time, the companies that do outsourcing offer a maximum speed of task execution; hence, each party wins. Tonic Health is a product tech company from the US that ventured to enter the Ukrainian labor market to build a team of developers.

So, you’re not only saving costs but not compromising on value when outsourcing app development. The popularity of remote work is increasing as more and more people discover its benefits. These include increased flexibility, improved productivity, and better work-life balance. Undoubtedly, the number of people seeking remote work opportunities will continue to rise and more employers will offer these roles. As a result, outsourcing providers will need to increase their staff levels to meet this growing demand.


However, Eastern European countries are ready to respond to the challenge. Both software development service providers and clients agree that if they can find out how to set up an outcome-based sourcing strategy everyone will be satisfied at the end. Outsourcing service providers are increasingly incorporating AI components into their applications and processes to make them smarter. As the world moves toward cloud computing, more and more businesses will look for providers who provide on-demand cloud computing services. In line with this trend, we anticipate increased demand from businesses across industries for cloud engineers and developers who are familiar with cloud infrastructure and management. Cloud computing services are a great solution for many businesses because of their low monthly costs and low overhead.

  • The main reasons for outsourcing to these countries are big talent pools, lower costs when it comes to developer salaries and taxes, and proximity to Western Europe and Great Britain.
  • But all of them have progressed to adapt to changes in the way people use technology.
  • In June 2020, HCL Technologies and Google Cloud announced the expansion of their strategic partnership to bring HCL’s software offerings, starting with HCL Commerce, to Google Cloud.
  • It includes the salary ranges and availability of the requested developers in Poland, Romania, and other countries in EE (as well as time-to-hire metrics and other KPIs for your case).
  • Get opportunity to work with India’s top 2% developers & coders who have excellent development skills in a wide array of software technologies.
  • This report elaborates the market size, market characteristics, and market growth of the Outsourcing industry, and breaks down according to the type, application, and consumption area of Outsourcing.
  • The fallout of the global pandemic was not the least to impact the figures.

Our goal is to provide the best and highest value to our customers through our flexible process of outsourcing services. The amount of money spent on information technology will rise worldwide. Many experts predict that global information technology spending will increase by 4% in 2021 and even more in 2022. The increase in IT spending will be accompanied by an increase in the use of outsourcing services. Since 2016, we have been the first and last stop for companies worldwide that need support to develop digital products and custom software solutions. Our integrated resource model paves the way for your technology projects to be completed sooner, with less effort.

It is due to the relative comfort in managing supply chains over a shorter distance and more minor time zone differences. Another advantage of nearshore outsourcing is that there are no significant cultural differences between your team and your outsourcing partner. This makes it easier for them to align with your business values and deliver your desired results. The global IT spending on devices, enterprise software, and communications services is expected to increase by 5.1% in 2022.

Because data is such an important part of the outsourcing sector, cloud-based technology might potentially help retrieve information quickly in the event of a disaster. Long downtimes would be avoided, allowing commerce to continue indefinitely. ITOS delivers global world class outsourcing services ensuring quality product delivery for fit your business needs. It depends on your business requirements and the outsourcing company’s ability to meet them. However, in general, IT outsourcing is a good option for businesses looking for cost savings, improved efficiency, and increased scale.

What Is The Future Of It Outsourcing?

According to IDC, IT spending is expected to increase by 4.2 percent by 2021, resulting in total revenues of $5 trillion. One of the most important lessons COVID has taught us is that we should enhance digitization in all aspects of society to be prepared for remote engagement in future contingencies. Companies recognize the critical role of IT specialists in fueling this quick digitization drive, resulting in high demand for their services. The no-code/low-code industry has been growing quickly in recent years. Customers are asking outsourcing partners to bring their people back to delivery centers, says Joshi.

It Outsourcing Market

In order to outsource an integral part of your company operations, you must be confident that the provider is capable of delivering the results you are paying them for. There are many factors to take into account when considering outsourcing your company resources to an external firm. We have selected the most representative 20 countries from 197 countries in the world and conducted a detailed analysis and overview of the market development of these countries. However, with the world’s economy brought into a sudden and screeching halt due to the pandemic, many giants in business have shifted their focus to virtual/digital engagement with their clients. In June 2020, ATOS completed its partnerships with Microsoft to jointly address the fast-growing SAP HANA market.

Predictions For The Tech Industry In 2021

To understand the present and the future of IT outsourcing, let’s first cover what it actually is. The cost of labour is much lower than in developed countries such as the United States and the United Kingdom. For example, there are over 285,000 developers in Ukraine who have different hard/soft skills and Intermediate or higher levels of English.

Also, our lawyers completely synchronized our client’s activities for Ukrainian and American laws, while our finance managers took care of payment support. The demand for software engineers is expected to increase even higher in 2022. Outsourcing companies are in an excellent position because they already have large pools of developers . Companies that lack technical expertise and talents, on the other hand, face the challenge of increasing their developer supply, which is where outsourcing comes in to fill the gap.

Leave a Reply

Your email address will not be published. Required fields are marked *