IT skills shortage, lower prices, access to world-class capabilities… you might have already heard these reasons that seem to be convincing enough to everyone but you. If outsourcing brings profit to your competitor’s business, why do you think it’s going to lose its power when you start implementing this strategy for your needs?
Let’s start with the numbers outlining outsourcing statistics. What do they say?
As reported by Statista, the global outsourcing market was worth $92.5 million in 2019. Statistics show that, in fact, the market size of the outsourcing industry in the US in 2020 is $132.9 billion and it is going to grow by 1.6% the same year.
Why? The main reason why the IT outsourcing industry thrives is the continuing number of trends that are like a flood engulfing software development sector. The last 5 years were a jumping-off point for the IT outsourcing industry. 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.
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 for 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 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 enhance productivity.
Let the human 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 robotic process automation (RPI). Get ready to see this innovation in ERP, logistics, and payment management.
What does it mean for the IT outsourcing industry? Well, it means a dramatic increase in productivity along with outstanding employment opportunities.
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 the cybersecurity skills shortage. With this in mind, a lot of businesses are going to outsource cybersecurity for the sake of time efficiency, world-wide 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.
Both providers and customers agree that if they can find out how to set up an outcome-based sourcing strategy everyone will be satisfied at the end. Paying for results sounds so much promising than paying for programming hours. Time-and-material and fixed priced 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 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.
I hope this trend inspires confidence in you towards outsourcing. Meanwhile, let’s move to the next one.
More and more businesses are winning on multiple fronts from adopting cloud and the demand for cloud computing is increasing. According to the Gartner revenue forecast, the cloud market is going to be $289.1 billion worth in 2021. Cloud platforms for data storage are going to be in great need. It will become necessary to provide online data centers and the required equipment by service providers.
Businesses that adopt 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 taking care of cloud security.
If you’ve been thinking about cloud migration, think about outsourcing as well.
Despite the fact that a lot of executives assume that outsourcing leadership or other core services are not wise options, this trend is probably the most prominent right now. It shows that most of the 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.
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.
It’s almost impossible to say exactly how many companies outsource, however outsourcing statistics by years and US outsourcing statistics show that the number of businesses deciding to choose this approach is skyrocketing. Now, it’s your turn to decide. Which of these IT outsourcing trends will you follow? Tell us.