If you have implemented outsourcing previously, or are planning to begin soon, and you’re concerned about whether outsourced IT solutions are actually reliable and profitable – lay your fears to rest. By reaching out to custom software development companies, you can eliminate the need of developing IT infrastructure yourself. This method has totally revolutionized how modern businesses operate, and it brings a whole host of benefits to your business model. However, the outsourcing industry is a constantly changing and developing beast. Read on to learn about the current state and trends of outsourcing, and how we predict it will develop over the next year.
Over the last few decades, outsourcing has become a key component of business management. The industry’s US market size in 2020 is $132.9 billion. Experts even predict that the overall outsourcing market size will be over $400 billion by 2027. While IT outsourcing is expected to reach almost $98 billion by 2024.
The growth in the outsourcing industry definitely makes sense. Businesses are realizing that they can partner with dedicated IT development teams and get high-quality services for cheap. This is permanently changing the infrastructure of businesses, and we predict this trend will continue to grow drastically over the next few years.
Tech Outsourcing Trends in 2020
We have been keeping a close eye on outsourcing trends over the last few months. Here are some commonly outsourced IT projects that we’ve noticed are ruling the industry:
Deep Learning and AI Technologies: Many businesses in major industries can gain a significant advantage over their competitors by integrating neural network technologies in data processing solutions. You can gain valuable insights based on the history of your relationships with your clients – and then use those insights to predict upcoming trends. Your business can use the latest AI technologies in the form of chatbots and virtual assistants. In any scenario, trying to put together a team of specialist in these fields will be challenging. It makes much more sense to form a contract with a dedicated software development team that is already focused on these technologies.
Cybersecurity: There is an almost constant rate of cybersecurity attacks over the web – every 39 seconds, on average. Paying for a highly qualified team of onsite security engineers is very expensive, and it makes no sense for most businesses. On the other hand, hiring only one specialist at the cheapest rate is worthless. Contacting dedicated teams who are focused specifically on cybersecurity is the way to go. You’ll get top of the line security, audits, and necessary protection mechanisms for an affordable price.
Cloud sourcing: According to the Gartner revenue forecast, by 2021, the cloud market is going to hit nearly $290 billion. The demand for cloud computing makes perfect sense – you can save a lot of funds by buying network infrastructure as a service. All the technical personnel, system and network administrators, network security specialists, and many other roles that are involved in the network infrastructure lifecycle – their services are available to you without need to hire them on a full-time basis.
Outsourcing Trends to Watch for in 2021
Now, on to a trickier subject – trends that will likely crop up in the next year. These aren’t set in stone; however, according to our analysis of the IT outsourcing industry, we will see huge developments in these areas in 2021.
More small businesses will outsource: As IT outsourcing continues to enable companies to reduce costs and hire professional teams without having to worry about the hassle of recruitment, small businesses will become increasingly more willing to outsource their work. It will no longer be a large company solution. What’s more, the number of software developers available for outsourcing will significantly increase over the next decade.
Great demand for nearshore outsourcing: In order to foster collaboration between onsite and offshore teams, we predict that companies will outsource IT projects to teams that are in close time zones. For instance, U.S.-based companies may outsource tasks to remote dev teams based in Mexico.
Growth in outsourcing destinations: Regardless of the surge in nearshore outsourcing, the popularity of outsourcing destinations will continue to grow – namely, India, the Philippines, and Ukraine. Software devs in these countries are enjoying a much higher salary when compared to their country’s average annual income – yet, you will still be saving costs.