8 IT outsourcing trends in 2022

Most importantly, there is a shortage of talent 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 2021 Gartner survey. Companies preferred outsourcing with multiple vendors before the pandemic. But now, most want a strategic partnership with one (or fewer) vendors, as recently reported by the University of Cambridge. Flexibility, agility, scalability, and technology enablement are top concerns.

AI can enhance efficiency, decision-making, and customer experiences within the sector. The demand for emerging technologies and the growing number of programming languages require further innovation. Here is a list of several emerging technologies and niches attractive for IT company outsourcing in 2023. Cybersecurity jobs are expected to grow faster in the next ten years.

spending on iT outsourcing – rising worldwide:

The large enterprise segment is projected to generate USD 488 billion in 2030 and grow at a CAGR of 5% by 2030. 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. The ITES/BPO sector in the Philippines is poised for sustained growth. Despite the challenges posed by the Covid-19 pandemic, the industry displayed resilience by swiftly adapting to remote work arrangements.

In 2023, Metaverse and Virtual Reality (VR) technologies are expected to drive significant trends in the IT outsourcing industry. VR is a type of immersive technology that allows users to interact virtually with computer-generated environments, which can be used in various applications. Metaverse is a virtual world that offers users an environment where they can interact with other users and computer-generated characters and explore virtual locations. To combat this talent shortage, companies must ensure they can attract and retain qualified professionals.

Performance and talent management

PWAs are web applications that provide users with an application-like experience using a  web browser. It combines the best features of web and native applications even having responsive UI/UX. This way, you can still experience using the app without even installing anything on your phone. In 2021, the market revenue in Latin America was valued at USD 14 billion, with Brazil being their major contributor. The market value of Middle East & Africa was USD 9 billion in 2021, with GCC being their major contributor. Companies also hire virtual assistants (independent contractors who work remotely on tasks like scheduling appointments,completing administrative activities, and more).

The technology business will likely undergo significant changes in the year ahead. Hundreds of companies and whole sectors are in the process of changing their practices, focusing on scalability, quality, agility, and customization. Besides, several major drivers influence the latest IT outsourcing trends, including cloud migration, the digital economy, and emerging new technologies. When estimating IT outsourcing trends for 2023, several factors must be considered. These aspects include future business process outsourcing trends, technology drivers, and significant challenges.

Businesses Will Look For Cybersecurity Specialists

The AI and Machine Learning outsourcing market will expand at a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030. The demand for robotic process automation is increasing as companies realize it is more cost effective to use robots to perform repetitive tasks. According to Deloitte’s 2021 Global Outsourcing Survey, these conditions are prompting businesses and service providers to become flexible concerning work. Moreover, outsourcing enables companies to offer their clients customized solutions. An outsourcing company is more likely to have the time, expertise, and resources needed to customize solutions than an in-house team.

IT outsourcing is expected to become an even more critical component of business operations by 2023. Businesses that recognize this trend and take action to capitalize on it now will be in a solid position to achieve success in the years to come. Outsourcing can provide numerous advantages, including lower costs, increased efficiency and scalability, and access to expert knowledge. This can lead to significant improvements in areas such as customer service, marketing, sales operations, and others. It’s becoming increasingly challenging for IT service providers to be all things to all customers in a rapidly evolving technology market.

useful web app development tools for 2022

Automation can improve efficiency, reduce costs, and increase the quality of IT services. Automation is becoming more advanced and can be used to manage and monitor IT infrastructure, automate workflow processes, and improve security. Automation can also be used in deployment, provisioning, and configuration of IT services and applications. AI-driven automation will also mean that more creative and strategic jobs such as software development, customer service, and data analysis will be outsourced to third-party providers. Ultimately, AI-driven trends in IT outsourcing will create new opportunities for experienced engineers and software developers to capitalize on.

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. In connection to the IoTs, business processes automation will continue to grow in the years to come. Businesses will be reliant on automated processes aided by AI and machine learning. Many established and technologically driven players are available worldwide.

Special focus: Indian IT services market

With more bandwidth and faster connection speeds, this could be a game changer in terms of how quickly companies can get help when they need it. That’s why it’s important to stay informed on the future of outsourcing, so you it outsourcing trends can be sure your business will stay competitive and relevant. Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014.

• The latest cybersecurity protocols require implementation, while sensitive users’ data and confidential information must be protected from a growing number of denial-of-service (DoS) attacks.
• An outsourcing company is more likely to have the time, expertise, and resources needed to customize solutions than an in-house team.
• First of all, since companies started to incorporate a remote working model, people have become more comfortable with virtual meetings, interviews, and hiring.
• Similarly, more organizations are focusing on creating more customized applications.
• A commitment to keeping up with compliance can help prevent potential penalties and fines and disruptions to your operations.
• AI also gives businesses more control over their data and processes, allowing them to integrate all aspects of their operations seamlessly.
• The MVP is the version of a new product that allows Blocshop and your team to collect the maximum amount of validated learning about customers with the least amount of effort.

Around 60% of millennials tend to be satisfied with chatbot-assisted purchase processes. One way is through chatbots, which can handle some basic customer service https://www.globalcloudteam.com/ inquiries and even take orders via social media channels. Chatbots are also able to connect with other systems and track inventory levels and deals.

How big is the outsourcing industry?

Take note of what’s trending today and what we need to look out for in the coming months. The global IT outsourcing market share is categorized by organization size and end-user verticals. You can go through the top outsourcing trends listed above to develop a strategic plan for successful outsourcing for the coming years. The market will grow at a compound annual growth rate (CAGR) of 30.9% from 2022 to 2030 (Grand View Research 2022).