It began with 76% fully equipped employees in the U.S. and Europe, 61% in Latin America, and 20% in the Philippines. Because of its swift action, it enabled 100% of its staff around the world to work from home. The IT industry will feel a sense of urgency in equipping companies with the right resources for expanding cybersecurity demands. However, no matter how varied they are, one thing remains true—they may shake the outsourcing industry. Try it for free to see how this growing outsourcing trend can fit into your business model. The world is incrementally but inevitably transitioning to a decentralized outsourced model.
It is possible to have round-the-clock help from a human person, rather than a script or automatic response, by outsourcing to certified companies during off-peak hours in other time zones. Well, it means a dramatic increase in productivity along with outstanding employment opportunities. Cultural incompatibility risk is often overlooked by business owners when https://www.globalcloudteam.com/ selecting a 3rd party service provider, which is a leading cause of failed collaborations. The Indian “yes” syndrome serves as a typical illustration of this phenomenon. In Indian culture, individuals tend to steer clear of providing negative responses, so if you receive an affirmative response to your inquiry, it typically implies “I will do my utmost.”
Trend 4: The Growing Significance of IT Outsourcing and Cloud Computing
BPOs now practice better workload management by streamlining services with the help of automation. Automation could eradicate low-level work in the following years, making traditional outsourced services more irrelevant. Reports in 2016 stated that around 50% of BPOs still practice traditional outsourcing. However, more BPOs have started and planned to integrate robotic process automation (RPA) into their operations. As the most in-demand jobs increased, more non-core work eventually became irrelevant, triggering an increasing gap between the demand and supply for workers.
By outsourcing software development, companies have access to top tech expertise from anywhere in the world, providing a wider pool of qualified candidates to choose from. Research states that the outsourcing market will increase by US$40.16 billion up to 2025. Some of the leading outsourced services, including accounting, IT, and human resources will continue to be in demand for the following years. In 2018, the global outsourcing market is said to be around $85.6 billion and reached a record of $92.5 billion the following year. Despite the threat of automation, the industry continued to adapt through the times – making its services more valuable to its clients. There is a fast-paced change in the outsourcing market today, as it adapts to global challenges.
IT Outsourcing Trends for 2023
Today, cloud computing is considered one of the major software development outsourcing trends, as it provides scalability and flexibility that organizations need to innovate faster and compete more effectively. An additional way to find potential vendors is to perform online searches for the areas you need help with. Many IT outsourcing providers and software development firms have blogs and are likely to turn up in such searches. If the blog posts or other resources look promising, it’s likely the company knows its stuff in this area.
- This BPO provider holds service contracts for Fortune 500 companies like AT&T and Verizon.
- Cultural incompatibility risk is often overlooked by business owners when selecting a 3rd party service provider, which is a leading cause of failed collaborations.
- According to the GSA UK, nearly 90% of respondents strongly believe that both buyers and providers will be signing outsourcing contracts focused on outcomes and value in 2020+.
- Offshore IT outsourcing can be a highly effective means for getting the services you need less expensively than the same services from local providers.
- Explore our latest case studies on web development and mobile app solutions, showcasing how we have assisted businesses worldwide in planning, designing, and developing applications for diverse industries and verticals.
- In the upcoming year, there will be a rise in freelance and independent outsourcing agency that will pertain to company’s general works through remote operation.
It means this approach will help clients select a suitable vendor for their project and makes it one of the outsourcing software development trends. As more businesses transfer their activities to the cloud, there will be a greater demand for IT outsourcing services that specialize in cloud infrastructure and administration. With the increased threat of cyber-attacks, IT outsourcing providers may need to emphasize cybersecurity measures to secure their clients’ data and systems. As the data from the GSA report reveals, 83% of respondents believe RPA will be of greater significance over the next decade.
Business Operations that are Better Outsourced
It is also true that modern IT outsourcing will be growing together with the number of people eager to outsource more tasks, such as technical management through outsourced CTOs. The reasons behind outsourcing organizations vary but the majority admit that customer-centric approach and discovering new capabilities are more attractive than cost-cutting. These motives often become a deciding factor when choosing whether to work with a partner on-shore, near-shore, or off-shore. It is also a good idea to ask how available your team of outsourced service providers will be for communication and support. Ask how much communication or support and what kind of communication or support your service package includes.
Whether you’re in home services, legal, healthcare, real estate, or eCommerce, our bilingual and highly trained virtual receptionists have the skills you need to foster a premium customer experience. One popular managed it outsourcing trends service that businesses large and small are favoring is 24/7 virtual receptionists, business texting services and call answering services. But, what is a virtual receptionist and how do they function within a business?
Cloud Computing Will Become Even More Popular
Customer centricity is now “in.” The increasing customer demands require businesses to add extra efforts in connecting with their audience base. Top BPO companies have even emerged from these rising locations, which can make it easier for future clients to outsource. Much of these efforts are seen with the use of chatbots, remote tools, and cloud calling services. Experts projected the fall of traditional outsourcing with the rise of automation and AI. Luckily, BPOs saw this as an opportunity to advance with their game even pre-pandemic. Cost-saving is one of the main reasons businesses decided to outsource during the pandemic.
There are few places where cloud adoption will be more prominent than with IT outsourcing. Gartner predicts that by 2024, approximately 45% of IT spending on various systems, applications, and infrastructure will transition from traditional solutions to that of a cloud-based model. Starting in 2020 and only further accelerating this year, the remote workforce is now a staple of our society.
Trends that will change the future of outsourcing
Hiring offshore developers (from a distant country) is the best option for long-term, complex projects when there is no in-house team or it’s small. One of the primary reasons companies opt for offshore software development firms is cost savings. Compared to onshore outsourcing, nearshore outsourcing may offer slightly lower operational costs, while offshoring can result in saving sometimes even twice more. Within a short period of time (at inVerita, up to 30 days), you can set up remote teams with experience in various tech stacks and domains. IT outsourcing involves working with external outsourcing service providers to receive IT services and infrastructure solutions.
Hence, businesses are looking to outsource their software development needs to companies that have blockchain experts, which is becoming a notable IT outsourcing trend. Along with the need for cloud computing, there is the need for security services to prevent all kinds of threats, which is another outsourcing trend. The necessity to avoid security risks and safeguard the company data from thieves and cyberattacks are among the reasons why businesses turn to IT outsourcing providers. By finding a trustworthy partner, companies will perform their regular tasks and have someone responsible for cloud security. The pandemic has made a critical input in reshaping the expected future of the whole technology industry.
As such, we provide various custom software development services from building mobile applications and creating web apps all the way to Slack bot development. Teaming up with a European vendor is also among the current trends in IT outsourcing. As such, Europe can offer a number of advantages, for example lower costs, reduction in capital investments, expertise and efficiency. This allows to hire top-rated IT professionals and implement the best technologies possible at a much lower cost, getting ahead of the competition.