The future of IT outsourcing: Emerging trends and use cases

April 21, 2023

Tags: Technologies, Tech Trends



IT outsourcing is one of the most in-demand services among businesses worldwide. Software agencies have emerged as a more than realistic choice for businesses who lack an internal IT department and require someone to maintain their internal software systems.


TechTarget, the specialized technology page explains that companies today can outsource multiple services “They often outsource information technology services, including programming and application development, as well as technical support. They often outsource customer service and phone support functions. They may also outsource other types of work, including manufacturing processes, human resources tasks, and financial functions such as accounting and payroll processing. Companies can outsource entire divisions, such as their entire IT department, or just parts of a particular department.”





Trends and new technologies


In recent months, the usage of new technology by businesses has risen like foam. Cloud computing is one of the most popular, as evidenced by a report produced by Statista using data from 2022.


They displayed the results of a study on the rate of acceptance of developing technologies by companies from 2021 to 2022 in the data collecting portal, indicating that 90% of those polled already utilize cloud computing, followed by Big Data analytics, with 55% market utilization.


Other technology solutions positioned alongside these two were augmented reality or virtual reality, the Internet of Things, robotic process automation, artificial intelligence, machine learning, and tailored e-commerce platforms.




IT Outsourcing Emerging Trends


There are various emerging IT outsourcing trends, including:


The Cloud Computing


Outsourcing IT services to cloud service providers is becoming increasingly common as more businesses transfer their IT infrastructure to the cloud. Cloud outsourcing can help with cost savings, scalability, and security.


Machine learning (ML) and artificial intelligence (AI)


AI and machine learning are becoming more significant in IT outsourcing. Companies are outsourcing services such as data analytics and automation to artificial intelligence and machine learning experts.




Robotic Process Automation (RPA)


RPA involves the use of software robots to automate repetitive and routine tasks. Outsourcing RPA services can help companies reduce costs and improve efficiency.




With the growing threat of cyber attacks, outsourcing of cybersecurity services has become more important. Companies are outsourcing services like security monitoring, threat detection, and incident response.




DevOps is a set of practices that combines software development and IT operations. Outsourcing DevOps services can help companies improve their software development processes and speed up their time to market.


Overall, these emerging trends in IT outsourcing reflect the growing importance of technology in modern business and the need for companies to remain competitive by leveraging specialized expertise and cutting-edge technologies.




IT Outsourcing's Future


As technology evolves and organizations attempt to remain competitive and decrease costs, the future of IT outsourcing is projected to grow and evolve. Everything indicates that cloud computing is the most popular solution among those who choose to contract this type of service for their business.


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.


Aside from technology advancements, outsourcing models may undergo some adjustments. Companies might request greater flexibility in outsourcing arrangements, such as the option to scale services up or down based on their needs, as well as more personalized services tailored to their individual demands.


There will also be a stronger emphasis on sustainability. As people become more aware of the environmental impact of technology, IT outsourcing companies may need to demonstrate their commitment to sustainability and embrace more environmentally friendly practices.


We at Rootstack believe that IT outsourcing is likely to continue to play an important role in the business world as companies seek to leverage technology to improve efficiency and stay competitive. However, the specific shape and direction of the industry will depend on a variety of factors, including technological developments, economic trends, and changing business needs.


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