Top 5 IT Outsourcing Trends For 2021 You Do Not Want To Miss

They are responsible for the list of product functionality requirements , which must meet the requirements of the business. In addition, the product often needs to be changed during any project to meet new requirements. Therefore, the product owner must adjust and reprioritize the list of product functionality requirements. Trends in IT outsourcing concern not only technological tendencies but also many organizational issues, which we will consider further. All blocks are in the public domain, and everyone can see the complete history of operations at any time.

However, even before the pandemic, the majority of tech businesses in popular outsourcing destinations such as Ukraine had been working in remote mode. In a decade, the global AI market is expected to be worth $15 trillion, and in 2021, the US AI market alone will generate $22.59 billion in revenue, according to Statista. Huge success and wide adoption of 5G connection has brought analysts to the conclusion that the 5G industry will expand at an annual growth rate of 43.9% from 2021 to 2027.

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IT outsourcing trends forecast that the IT outsourcing industry will reach $425.19 by 2026. Outsourcing statistics for 2021 show that application development is one of the most frequently outsourced IT functions. Simultaneously, data center operations, network operations, help desk, and desktop support are the four least outsourced IT functions in 2021. Companies will have to change the nature of contracts so that they share more risks and rewards with service providers. Our survey shows that executives expect a rise in the use of outcome-based contracts (47%) and joint ventures (47%).

Robotic Process Automation is an emerging technology being rapidly adopted by BPO service providers. RPA stands out as the leader in emerging automation and continues to be one of the leading benefits of outsourcing in 2022. BPO service providers are utilizing cutting-edge technology to improve operational efficiency and deliver high quality to their clients. Outsourcing companies closely monitor the emergence and development of new technologies. For example, developing various software, whether a tracking application or an e-learning app, is essentially completed with technology outsourcing trends. So now, let’s consider which solutions will be at the peak of popularity in 2023.

This growing outsourcing industry includes IT , healthcare, accounting, and other sectors. To build upon the defined innovation goals, they must extend to the contract. There are several contractual clauses that have increased importance in today’s digital environment. These innovation clauses should be included in the contract not only to encourage innovation but also to protect the company. Quantifying innovation and including this as part of the business case is also essential since innovation solutions and tools typically represent a significant investment for the organization. A strategy-driven innovation framework encourages all parties to discuss, deliver, and measure innovation value.

24% of small businesses outsource to increase the efficiency of their business.

While some think that outsourcing hurts a country’s economy, many companies around the globe still do it. In fact, a lot of companies have managed to survive by outsourcing non-core business activities. As a result, the Indian workforce is cheaper than in other parts of the world, and it’s possible to find inexpensive but quality employees.

That’s evident from a survey that BCG conducted in the last quarter of 2020. We found that companies will continue to depend on service providers even though they will also invest more in developing in-house capabilities. Other businesses can use metaverse to improve teamwork, communication, and company culture, building global teams on a hybrid work model that integrates virtual reality. With the help of outsourcing vendors, you can also kickstart your game. We’re in this digital transformation field for over 15+ years, as far as we’ve noticed, we feel – India, to be the budget-friendly destination to outsource your digital services. And outsource employees worldwide, payroll requires adjustments to keep up with different countries’ rules and regulations.

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Businesses may outsource a complex product to an IoT-focused company to save time and money. Studying these trends can guide you to develop successful business plans for 2023. Learning more about an outsourcing trend can also help you handle uncertainties in your business and manage internal stakeholders effectively. Commonly-outsourced administrative activities include telephone services, bookkeeping, event management, payroll management, and more.

According to Statista, the IT outsourcing industry is growing at a CAGR of 8.93% and will be worth a market volume of $551,956.3 million by 2026. According to a Clutch survey, 90% of small US businesses plan to outsource a business process in 2022, a 10% increase from 2021. Companies are handing over cybersecurity to MSPs as they’re more likely to have cybersecurity experts and advanced solutions.

The Impact Of IT Outsourcing Trends 2023 On Business Processes

Then, statistics show that outsourcing helps employees focus on the core tasks. The global recruitment process outsourcing market is worth $5.48. 83% of IT leaders with in-house security teams consider outsourcing their security efforts to a managed service provider in 2021.

Together, these two types of outsourcing generate $92.5 billion. Additionally, Southern Europe has the largest share of business process outsourcing. Outsourcing statistics have announced a significant growth of the outsourced customer care services industry in the next couple of years. For now, more than 50% of all companies employ third-party customer support representatives to improve customer experience.

The COVID-19 pandemic ushered in a digital revolution with a majority of the businesses undertaking five years’ worth of digital transformation within a few months. However, with the increased shift to digital, exposure to cyber-attacks also increased. A survey by Syntax revealed that most IT leaders and decision-makers are dissatisfied it outsourcing trends with their current security tools and practices. Out of the total 500 decision-makers surveyed, 83% plan to move their security teams from in-house to a managed service provider . Overall, the outsourcing market continues to grow, albeit more healthily in Europe than in the US, and with smaller deals and a greater emphasis on BPO.

Ensure that the service provider retains key thought leaders that were identified in the RFP process so that they can lead the desired innovation efforts. It is not only the key to hitting traditional cost and quality targets but also to delivering new capabilities, increasing revenue growth, and improving the user experience. IT outsourcing trends mean there is no need to search and hire each specialist; you get a ready-made team ready to create a solution, especially for you. Another significant IT outsourcing trend is the creation of complex software solutions, such as various modules and systems that allow you to perform tricky tasks. However, such products require narrow expertise from developers. Therefore, implementing ML is expected to be one of the IT outsourcing trends.

• Accordingly, the company significantly improves many processes, such as forecasting, calculations, and data management.
• ‘Great Expectations’ has made enterprises revisit their IT strategies.
• About 14% of companies report outsourcing over 50% of their cybersecurity operations.
• Real-time last sale data for U.S. stock quotes reflect trades reported through Nasdaq only.
• The specialized sectors of the company include Cognitive, Watson, Cloud, Consulting, Experience Design, Resiliency services, Mobile, Security, Internet of Things, Systems services, and others.

BPO service providers ensure maximum efficiency, security, speed, flexibility, and accessibility with effective cloud integration. Clutch’s survey, businesses prefer to collaborate with their outsourcing partner to increase efficiency. Through outsourcing, a company can manage more projects with the assurance of high quality.

Remote Work Statistics — IT Outsourcing Trends in 2021

Contract development and manufacturing organizations help the pharmaceutical and biotech industry by offering additional development capacity, specialty capabilities, and cost advantages. Due to the potential advantages over in-house manufacturing, the CDMO outsourcing market will grow by $44.17 by 2024. Hospital outsourcing trends predict that the global hospital outsourcing market will expand at a CAGR of 10.78% by 2026.

83% of IT leaders plan to outsource their security to an MSP (manage service provider) in 2021.

RPA uses bots and artificial intelligence to automate simple and repetitive tasks, resulting in faster cycle times and operational efficiencies. To help our clients succeed, we build new solutions that get the job done quicker, at lower cost, and with higher quality. We understand our client’s goals and the challenges they face to accomplish their business objectives. ARDEM delivers a scalable solution that grows with your business needs. Business Process Outsourcing Service Providers such as ARDEM build their technology tools and adapt their work processes to help their clients succeed.

I have spoken to several companies that have been outsourcing IT services, product development, or web development for a long time. The majority of them plan to explore the multi-vendor approach, especially for IT outsourcing. These questions were on my mind for quite some time and as the global pandemic brought everything to a standstill, these questions started nagging me even more.

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India seems likely to continue to be the largest offshore centre for at least the immediate future, and more complex work will still be performed there for the moment. China will begin to attract more lower-value work, especially ADM, and in particular in respect of non-business-critical software. Research firm IDC has recently predicted that Chinese cities will unseat those in India and the Philippines as favoured offshore delivery centres by 2011. Analysts have recently claimed that 5-10 per cent of US and European IT software outsourcing will be diverted from India to China in a few years’ time. The current trend for multi-sourcing began a couple of years ago in the US – driven by a landmark General Motors deal. The trend has been picked up and reflected in the UK, to the extent that multi-sourcing has now become the favoured sourcing strategy for large outsourcing projects.

IT Outsourcing Trends in 2021 [+IT Outsourcing Statistics]

Owing to her passion for her profession, she loves to stay updated about the current and upcoming trends in the IT industry. Even healthcare and legal industries outsource jobs, and 68% of consumer product companies use outsourcing. In essence, the US is one of the countries that outsource jobs the most.