The main difference from ordinary mobile applications is that they move back and forth between mobile and web apps. PWA are designed to create a mobile application-like experience at websites. It creates unique customer journeys that assist clients in making wise decisions. Chatbots are effective guides when it comes to consulting on service purchases. As a result, companies will see an increase in productivity and customer service along with outstanding employment opportunities.

Eastern Europe will become a more attractive destination for IT outsourcing. India and China will still be the leading outsourcing countries where the largest share of global outsourcing revenue is generated. However, Ukraine, Poland, Belarus, and Romania will be their direct competitors with high-quality performance, commitment, and affordable prices. The difference between outsourcing core and non-core tasks will be less evident as vendor-customer relationships will be more reliable and trustworthy.

  • If your business uses Atlassian products and tools, you should also consider the importance of implementing Atlassian governance too.
  • From the reduction of all operations costs to minimizing manual mistakes and improving the coordination of work, the RPA cannot be out of outsourcing trends.
  • “This will mean price increases that service providers will need to pass to unwilling customers an inflationary economy,” Gupta says.
  • Application development outsourcing has increased the most in terms of frequency, which is the percentage of companies outsourcing a particular function.

Data entry and transcription are examples of simple tasks that can be automated through RPA. This is helpful in workplaces experiencing operational stress brought on by the pandemic and requiring support for human workers. It also leaves employees to focus on core areas of expertise and more complex projects.

Interesting Outsourcing Trends From 2021 To Watch In 2022

Also, one shouldn’t avoid the fact that tech companies managing multiple vendors have successfully changed into a strong partnerships with better collaboration. So without any further ado, let’s begin with current outsourcing trends. Enterprises are vulnerable to cyber-attacks and new forms of threats as technology evolves and diversifies at an exponential rate, and employees access networks remotely. The digitization of business management has led to an immediate requirement to guard the company’s networks, data, and infrastructure. With more firms transferring their data to the cloud and more employees accessing networks remotely, better cybersecurity measures are required to maintain infrastructures secure.

IT outsourcing trends

Followed by flexibility(40%), speed-to-market(20%), access to tools and processes(15%) and agility (50%). Although most nations have recovered from the pandemic and businesses have started operating from offices, the IT outsourcing industry will continue to grow. With an increasing demand for the usage of cloud platforms in outsourcing, the cloud-savvy clients are expected to demand more from the cloud providers. Therefore, IT outsourcing trends enterprises are expected to demand significantly higher value from the cloud providers for driving transformation in their businesses. Last year, the market witnessed a considerable amount of mergers and acquisitions in IT and business process outsourcing sectors. Therefore, until smaller players make timely mergers with the right partners, the chances of only the stronger players surviving in the market are higher.

The outsourcing industry will become more collaborative and yet competitive. In particular, clients will look for IT outsourcing vendors who provide customer-centricity and are progressing with new technologies. Not only will the companies be willing to cut costs, but to get a people and value-driven partner. As the GSA report states, software development providers will be contracted as service integrators sharing risk and responsibility.

For other areas, there is generally a trade-off between saving money and improving service levels. As a result, these macro factors are shaping many of the current trends in IT outsourcing, though not all. All outsourcing services needed must consider best practices so that they can stay in the league for the long run. In case, if you have any doubts or queries, feel free to mention that in the comment section below. The world of software development is changing every second and so should you.

Top 5 Software Outsourcing Trends Of 2022 With Outsourcing Rates

In fact, in a study published by GSA UK in 2020, companies said that the quality and value of outsourced goods were top priorities. For this, they’ll need skilled employees and advanced technology — which can be expensive in most countries. According to the statistical data, IT spendings will be increased to $3.8 trillion in 2019. We are always looking to hire talented individuals with equal and extraordinary proportions of industry expertise, problem solving ability and inclination. Many developers will remember 2021 as one of the most stressful periods in their careers.

IT outsourcing trends

Cloud platforms are an excellent way for businesses to improve their processes. While most of us are working from home, it would be difficult to protect the workforce against cyberattacks. We have assisted 150 global brands to build remote development teams in India over the past 12+ years. Statista report shows that Canada’s spending on public cloud computing will reach 10.3 billion Canadian dollars by 2023.

Outsourcing providers that can offer cybersecurity services will be in high demand. Surely, the market for cloud computing services will continue to grow in the next few years, and companies will increasingly turn to outsource providers for help with this. One potential reason is that companies are simply more comfortable with handing over more of their work to service providers. The cloud transformation has been well under way for the past few years.

Artificial Intelligence Ai

With collaboration being a critical element in outsourcing, cloud-based technologies enable collaboration on multiple levels, seamlessly, remotely, and securely on a cloud-based platform. As more businesses move their infrastructure to the cloud, outsourcing firms are increasingly offering cloud-based services. Because of these benefits, more organizations are choosing to outsource some of their business functions.

Most importantly, there is a shortage of talent that’s specialized in new technology. This shortage is the most significant barrier to the adoption of 64% of modern technology used in fields, like network and security, according to a Gartner 2021 survey. And a company is more likely to build a strong relationship with its outsourcing company when it’s working with the same team for an extended period. A strong bond can increase commitment and trust, which are essential for continuous outsourcing.

Automation will encompass not only software but also physical technologies such as robots and drones, allowing outsourcing companies to manage tasks more effectively and intelligently. Companies will want to outsource RPA in 2022 and beyond because it protects them from pandemic-related restrictions and lockdowns. As demand for AI grows, companies are looking to outsource AI-driven projects or want outsourcing services providers to bring strands of AI into their existing processes. Several software development trends have impacted the IT industry as well as our lives. More companies will seek out AI, cloud computing, blockchain development, or cybersecurity outsourcing providers in the future. The outsourcing trends 2021 reflect the changes the pandemic brought to the outsourcing market this year.

Top 10 It Outsourcing Trends That Will Matter In 2021

In this article, we have singled out 10 trends in outsourcing software development that will matter in the unprecedented times of 2021. Robotics in outsourcing will continue to increase in the coming years as businesses strive to find ways to reduce costs and improve efficiency. This will lead to a rise in providers offering robotic services such as process automation and software development. Media and telecommunications is anticipated to be the second-largest market holder. The packaging industry is driven by the growing demand for personal protective kits, face masks, face shields, and others, along with high consumers in developing economies.

IT outsourcing trends

In March 2021, SCC AVS partnered with Utelogy to enhance the management, monitoring, and control of video-enabled workplace software solutions. Based on region, the IT outsourcing market share is segmented into North America, Europe, Asia-Pacific, Latin America, and Middle East Africa. Whatfix, the digital adoption platforms leader, today announced three strategic hires to drive growth in the APAC region.

Probabilistic Data Structure Use Cases

With the boom of PokemonGo, Apple’s ARKit, mobile AR has been placed in the same category as headset-based AR devices such as Google Glasses. Go through the outsourcing trends listed above to develop a strategic plan for successful outsourcing. The market size of virtual assistants was valued at $3,442 billion in 2019 and is predicted to grow by $44,255 million by 2027, according to a 2020 Allied Market Research survey. Deloitte’s Global Survey 2020 stated that 70% of the surveyed companies said cost reduction was their main outsourcing objective.

Undoubtedly, the cost-reduction focus has always had a strong foot in decision making and this trend continues to be the primary and dominant driver. The most cost-effective way to grow, diversify, scale and progress continues to be outsourcing. The service is meeting the growing demand by providing experienced teams in IT to perform all essential process based tasks on time in the best practices possible.

For example, lately, we have developed a VR escape room set for the promotion of Mr. Mercedes TV series. King’s famous novel, the game should have put a user into a special, intense atmosphere. Later on, at the San Diego Comic Con 2018, AT&T presented this game to the publicity. While only 27% of employees worked remotely before the Covid-19 outbreak, 44% are working remotely now, according to a 2021 SuperStaff survey. Similarly, a 2020 report by the Vienna Institute for International Economic Studies summarized that German companies were actively considering nearshoring. In the post-pandemic world, companies are nearshoring more than in previous years.

However, to reap the maximum benefits of these IT outsourcing trends, you need a trusted, expert, and experienced outsourcing IT partner. Indeed, the demand for AI services will increase in the coming years, and outsourcing providers will offer these services alongside traditional IT solutions. This security is attractive for companies seeking to outsource IT functions or cloud storage.

For example, a website may provide you with local weather reports or traffic news by storing data about your current location. When you visit websites, they may store or retrieve data in your browser. This storage is often necessary for the basic functionality of the website.

All this will help IT vendors choose the best company which guarantees good quality. These are just some basic points that make companies hire third-party specialists. Now, it is time to move on to a more in-depth discussion of the top IT outsourcing trends. Moreover, the software outsourcing engagement will become more streamlined as a slew of higher degree specializations will become available. That said, keeping your feet matched with the above-mentioned software outsourcing trends is no easy task.