So, what does the future hold? If you want to see how the story further unfolds and finally make a decision — you need to know these IT outsourcing trends determining the future of outsourcing.
IT Outsourcing Trends that Will Rule in 2023
Trend #1. Artificial Intelligence, Machine Learning, and Chatbots
Well, some resources say that AI will kill the outsourcing business. Others firmly believe that groundbreaking inventions are the most powerful forces among IT outsourcing trends and will boost the growth of this industry. Who’s right?
It’s not a surprise that outsourcing, like any other service, has weaknesses. Slow response times and security risks might be those things that scare you from outsourcing your project to a third party. However, AI promises to solve this problem. One of the purposes artificial intelligence was created is to minimize human efforts by performing routine tasks and allowing people to concentrate on the main business goals.
How does this trend influence this industry and make it more secure?
First, it’s enhanced automation.
Time is money. In order to stay competitive, there must be automation and quick execution. AI’s machine learning empowers automation, allowing software apps to learn instead of blindly following commands.
For instance, artificial intelligence can decipher the terms of invoices by making judgment-based decisions. Those IT vendors who learn how to apply AI inventions in their businesses will be able to process information automatically, avoiding errors and enhancing productivity.
Let humans do what only they can do. Machines will tackle the rest of the work.
What’s more, artificial intelligence increases the quality of customer service, and outsourcing isn’t an exception. AI creates unique client journeys helping customers make wise decisions. Chatbots are amazing guides when it comes to providing advice necessary for service purchases. Another way AI is helping outsourcing is through robotic process automation (RPI). Get ready to see this innovation in ERP, logistics, and payment management.
What does this IT outsourcing trend mean for the industry? Well, it means a dramatic increase in productivity along with outstanding employment opportunities.
Trend #2. Strong Focus on Cybersecurity
The former FBI director, Robert Mueller, once said: “There are only two types of companies: those that have been hacked, and those that will be.” It explains why cybersecurity is such a concern among enterprises right now. The fact that a hacking attack occurs every 39 seconds makes businesses put their software security at the top of their priority list.
More than 70% of companies aren’t prepared for cyberattacks which results in a cybersecurity skills shortage. With this in mind, a lot of businesses are going to outsource cybersecurity for the sake of time efficiency, worldwide experts, real-time monitoring, and cost efficiency.
If you feel that your business is vulnerable to cyberattacks, consider outsourcing in order to prevent the risk of losing money or sensitive data.
Trend #3. Concentrating on Value not Hours
Both providers and customers agree that if they can find out how to set up an outcome-based sourcing strategy everyone will be satisfied in the end. Paying for results sounds so much more promising than paying for programming hours. Time-and-material and fixed-price contracts are still the most common model in the outsourcing industry.
As you might already know time-and-material contracts are solely based on paying for hours and resources spent, therefore it’s the dedicated teams’ finest hour. The dedicated team model allows clients to be directly involved in the hiring process and find perfect candidates for long-term cooperation. These contract changes make IT outsourcing more interpersonal and value-driven. It means this approach will help clients select a suitable vendor for their project.
Trend #4. Cloud Sourcing
More and more businesses are winning on multiple fronts by adopting the cloud and the demand for cloud computing is increasing. According to the Gartner revenue forecast, the cloud market was $289.1 billion worth in 2021. Cloud platforms for data storage are going to be in great need and for sure among IT services outsourcing trends in 2023. It will become necessary to provide online data centers and the required equipment by service providers.
Businesses that adopt the cloud will be more worried about cybersecurity and will try to avoid all threats by opting for outsourcing security services. By finding a reliable partner, companies will be able to render their responsibilities and have someone take care of cloud security.
If you’ve been thinking about cloud migration, think about outsourcing as well.
Trend #5. Outsourcing Core Business Services
Despite the fact that a lot of executives assume that outsourcing leadership or other core services are not wise options, this is one of the most prominent software development outsourcing trends right now. It shows that most businesses receive profitable growth as a result of this outsourcing strategy.
Small and mid-sized companies are reaping the benefits of this trend by hiring qualified part-time executives instead of less experienced full-time experts.
Trend #6. IT Outsourcing to Eastern Europe
For a long time, India and China were the most popular destinations for IT outsourcing, mostly, because of the low price of the services. Today, the vector is changing and companies who used to outsource to India and China, like those from North America, outsource to Eastern Europe.
According to Statista, IT outsourcing services reached $2,69 billion in 2022. A high percentage of skilled engineers, strong security practices, and proficiency in English make countries like Poland, Ukraine, and Romania popular outsourcing destinations and definitely one of the outsourcing software development trends in 2023.
Trend #7. Special Focus on Customer Experience
Next among software outsourcing trends is improving customer experience. Companies are realizing the importance of delivering exceptional experiences to retain customers and gain a competitive edge.
As customer expectations continue to rise, businesses are seeking ways to improve customer satisfaction and loyalty through personalized, seamless, and convenient interactions. By outsourcing customer-facing functions, such as customer service and support, businesses can benefit from the expertise and technology of experienced providers, allowing them to better understand and meet customer needs.
Additionally, outsourcing can provide cost savings and operational efficiencies, freeing up resources that can be invested in enhancing the customer experience.
No matter which of the information technology outsourcing trends you are to follow, the key to successful outsourcing relationships is finding a reliable IT outsourcing vendor who will be your partner bearing the responsibility of the core business services. Now, it’s your turn to decide. Which of these IT outsourcing trends will you follow and what do you think are the future trends in outsourcing? Tell us.