Content
This might include cyber-security, cloud migrations, data management, and secure digital infrastructure. Organizations can take their business processes to the next level by taking advantage of the many advantages offered by outsourcing, such as increased efficiency, scalability, and access to expert knowledge. Any business with aspirations of continued success should be aware of these IT Outsourcing Trends 2023 and implement them as soon as possible in order to keep up with the fast pace of technology. Additionally, businesses can direct their internal resources away from mundane jobs and toward more important projects. This is especially helpful for smaller companies that don’t have the required expertise or personnel to carry out specific initiatives successfully. They are able to maintain their competitive advantage without having to make significant investments in recruiting full-time employees by outsourcing.
Though automation was critical in the pre-covid era, too, the pandemic has hit the acceleration of adopting automation tools. Accenture plc is an Irish-American IT services and IT consulting company headquartered in Dublin. The specialized sectors of the company include Systems Integration and Technology, Management Consulting, Application & Infrastructure Outsourcing and Business Process Outsourcing. Also, the company has made 236 acquisitions and company has spent more than US$752 Million for the acquisitions. It has invested in several sectors such as Sales Force Automation, SCM Software, Business Intelligence and others. And lastly, outsourcing is still one of the essential tools for client organizations and strategies.
Backsourcing is the process where organizations bring the outsourced tasks back to in-house development teams. Many companies, especially startups, questioned how far outsourcing could take them. They believed that post outsourcing product development to India for initial stages, they would hire an in-house development team once it gains traction. In the coming years, IT outsourcing companies can expect to get more business out of the booming startup economy and the burgeoning number of small and medium-sized businesses. As more startups are coming up with new digital solutions and small businesses are shifting toward enhancing the digital experience they offer, companies offering IT services can expect more business. In fact, the sudden boom in digitization has caused the SMBs that are in the prototyping stage to push their products forward for quick launch.
Attention to cybersecurity
Value networks are connections you build to create value for your company or its processes. All through 2020, as the pandemic raged and governments around the world were forced to impose, and then reimpose, national lockdowns, the world’s economies were paralyzed. To understand the impact of the COVID-19 crisis on outsourcing, BCG conducted a survey of 200 global companies with large IT and business-process outsourcing footprints. (See “About the Survey.”) We found that 82% of the respondents saw revenues fall, 78% faced operational challenges, and 68% had to cope with service provider-related challenges. RPA is being used to automate repetitive business processes through the use of Bots. This technology is enabling BPO service providers to deliver higher accuracy quicker.
- Outsourcing statistics for 2021 show that application development is one of the most frequently outsourced IT functions.
- A value-based investment approach should drive funding and prioritization.
- To back this point, there is a GSA report that states 92% of companies that outsource development to India or other budding economies have realized the importance of outcome-based contracting.
- I’m sure any IT leader or organization outsourcing or planning to outsource IT services , must be considering these questions too.
- In just a few months, Covid-19 has fast-tracked digital transformation for global companies by an average of six years, according to some experts.
- Below, we lay out these considerations for all 14 technology trends, so that you can better understand them and consider how they relate to your organization.
Being a mature global ITO destination, India offers a large and talented pool of programmers across emerging technologies. Companies plan to outsource their cloud computing and migration to optimize cost and speed up deployment. The stats clearly show the shift in the mindset of employees, and companies need to change their business models and working styles to retain talent in their organizations.
IT outsourcing industry – Statistics & Facts
I’m sure any IT leader or organization outsourcing or planning to outsource IT services , must be considering these questions too. The outsourcing industry will transform this year with a major emphasis on building value networks with outsourcing companies. However, the 2020 survey shows that reducing operating costs is becoming a critical factor once again. Businesses are now choosing their outsourcing partner based on the extent of cost reduction. This is mainly because of the economic uncertainty caused by the COVID-19 pandemic.
You’ve previously logged into My Deloitte with a different account. Link your accounts by re-verifying below, or by logging in with a social media account. At Deloitte, our purpose is to make an impact that matters by creating trust and confidence in a more equitable society. 58% of Gen Z employees are considering moving to hybrid work, and 56% plan to move to remote work in the coming year. 46% of employees are considering job switches due to a lack of remote working options. The Global AI market for wearable devices is predicted to reach $180 billion by 2025.
Israel, one of the top three tech startup nations of the world, is experiencing a 15% software developer shortage. Sweden alone will be short of 70,000 developers or digital-related specialists by 2022. McKinsey’s survey shows that 87% of organizations are already experiencing a talent shortage. Get hand-selected expert engineers to supplement your team or build a high-quality mobile/web app from scratch. Looks like you’ve logged in with your email address, and with your social media. Link your accounts by signing in with your email or social account.
The Most Important US Outsourcing Statistics (Editor’s Choice)
Also, you can request the introduction of technological innovations that will help you improve productivity and increase profits. Along with the digitalization of businesses, the number of cyberattacks is also increasing. That it outsourcing trends is why IT services outsourcing trends for 2023 necessarily include cybersecurity. When developing software, companies now pay great attention to solutions that protect data from leakage, theft, or unauthorized changes.
As a result, businesses in many sectors are expected to look for IT service providers with experienced cloud engineers and developers familiar with cloud infrastructure and management. These professionals will assist companies in preventing cloud bill shock and ensuring the safety of their data. But software development, automation, IoT , and other modern technology evolve regularly. It can be challenging to update technology frequently, so companies are outsourcing to service providers.
The merging of the offshore and onshore delivery models continues and service providers will continue to search for more competitive solutions in order to win customers. To sum up, it is essential to find a reliable offshore technology partner to be ready and well-prepared for the new wave of IT outsourcing trends in the future. At Groove Technology, we offer team augmentation and full team outsourcing services with flexible process based on your business goals. Fintech, healthcare, and telecom are among the industries where most organizations are accelerating their digital transformation.
In this regard, there is a trend in IT outsourcing for creating online marketplaces, applications for retail, and logistics solutions for managing deliveries. Amid the turbulent changes brought by the pandemic, IT has become integral to strengthening business resilience. And the IT outsourcing industry is readily adapting to these new dynamics. Businesses will certainly continue to outsource jobs in 2021 to reduce operating costs, focus on core competencies, and hire high-quality experts.
Above the clouds: Taming multicloud chaos
● The report provides assessments of Business Process Outsourcing market share at both country and regional levels. No matter how hesitant, confused, or scared startups, enterprises, or SMBs were, they continued getting their products built to digitally transform and avoid becoming a thing of the past. They enhanced their outsourcing relationships to keep their businesses afloat and ready for any future disruption. They need to react, remodel, and return to business in the “new normal” which is touted to be financially risky.
Network operations dropped in IT outsourcing volume from 34% in 2019 to 27% in 2021. It’s also declared that the average outsourcing for midsize companies went from 9.1% to 11.8%. 55% of poll respondents said that they are planning to cut expenses on cybersecurity due to COVID-19. Analysts predict that AI-based chatbots will facilitate 90% of customer interactions in 2022. Also, businesses with an online presence will heavily invest in building top-notch online shopping platforms.
BPO Outsourcing Trends
This has helped them win more deals from the Tier 1 service providers and to move beyond their typical strengths in applications development and maintenance . As deals become smaller and customers focus more on governance issues, deals are taking longer to close. Companies may think long and deeply about their relationships with service providers.
The 5 best Employer of Record services
By now, numerous research studies have been published, and they yield some pretty fantastic outsourcing statistics. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
We have assisted 150 global brands to build remote development teams in India over the past 12+ years. An established offshore development company like Your Team in India can help you fast-track your development by quickly finding and deploying offshore developers on your project. Choosing a reliable offshoring partner is as critical to ensuring success. An experienced partner can assist you in navigating the challenges faced while hiring offshore developers.
Which countries outsource the most?
Grand View Research predicted that the worldwide BPO market could top US$ 343 billion by 2026. Statista), and this trend is expected to continue to increase in 2023. This trend could continue in 2023 while the world economy recovers from the pandemic and recessions. This change could be due to the relative comfort of companies’ experience in managing supply chains over a shorter distance and more minor zone differences of nearshore companies.
Emphasis on building relationship networks has strengthened
The demand for MSPs is so high that it was worth $152.02 billion in 2020 and will grow to $274 billion by 2026, as per Statista. Companies keeping abreast of emerging technology can use it to automate processes, increase efficiency, and simplify operations. It takes strategy, vision, and experience to tap into the potential of outsourcing innovation. If you’re looking for ways to better navigate the evolving global outsourcing landscape, mange risks, and realize opportunities, we should talk. Tailoring an incentive structure to the situation and the vendor relationship is valuable for organizations and their vendors. For example, a large agricultural company funded an “innovation pool” with one of its vendors.
