5 Emerging IT Outsourcing Trends to Watch in 2023

Digital transformation has ushered in an era where end users always look for companies that can give them more high-end services. Many companies are moving to most in-demand outsourcing services to keep pace with fast-changing technology.

Information Technology is one such sector that has been booming after the pandemic outbreak. According to the report, IT services cover 72% of total outsourcing value. Moreover, 60% of businesses outsource their app development.

IT outsourcing alone will see an expenditure of $519 billion by 2023. It is an increase of 22% over 2019. It gave rise to many IT Outsourcing Trends companies will seek in the current year.

Let’s discuss the IT outsourcing trends and their future.

What is the Future of IT Outsourcing?

We have seen a rise of 22% in the IT outsourcing industry from 2019 to 2023. But this massive jump is going to continue. The hunt for the right technology vendors and IT consulting firms will be on to accelerate the digitization process. It will evolve after 2023, too, because of the increased reliance on digital systems.

You must evaluate each agreement associated with the IT outsourcing services provider as a business person. It will help you gain a competitive advantage in the digital landscape. Moreover, you can sort out the problem of the tech-talent crunch and the increased gap in demand and supply.

What are some of the IT Outsourcing Trends?

1. Shift to Cloud Sourcing
   The coming years will see more expenditure on cloud computing and cloud services. The cloud revolution will be one of the crucial IT Outsourcing Trends. Moreover, the organizations will use SaaS, IaaS, and PaaS under Cloud services. This outsourcing trend will sort many IT challenges by simplifying complex business processes and providing scalability and flexibility to businesses.

Let’s check out three types of cloud computing services:

• SaaS: Software-as-a-Service is a web platform that gives consumers subscription-based access to cloud computing. You can deliver the software like a product to organizations. The SaaS comes with management and data storage features. The major examples are Salesforce, Google G Suite, and Microsoft Office 365.
• IaaS: The IT services provider offers a ready-to-use infrastructure that includes a private network, a developed environment, instruments for software development, secure data storage, etc. IaaS (Infrastructure-as-a-Service) helps backup the IT infrastructure of your business with the secured cloud backup storage and third-party server. Its examples are IBM infrastructure, Amazon Web Service, Microsoft Azure, and Google Cloud Infrastructure.
• PaaS: It provides access to various development tools. Platform-as-a-Service or PaaS also renders access to deployment instruments and API. You receive access to Cloud storage and virtual development environments that help to build, test, and run the applications. You need not pay for the excessive functionality. A few of its examples are Magento Commerce Cloud, AWS Elastic Beanstalk, and Apache Stratos.

2. Blockchain Technology

• A report shows that from 2022 to 2030, the market size of the blockchain market will grow at a CAGR of 87.7%. Its initial market size was valued at $10.02 billion in 2022. Blockchain technology is gaining momentum because of the increased demand for the decentralized web to support anonymous transactions. This technology offers transparency, improved security, and protection from cyber-attacks.
• Due to these features, organizations are looking for suitable IT outsourcing process security agencies to leverage the benefits of blockchain. Along with Blockchain, AI/ML technologies will mitigate any financial risks and provide overall security to the organization.
• The majority of businesses are looking forward to partnering with the right IT consulting services to remain updated with the digital landscape in the present times. It will help improve their business’s performance, competitiveness, and scalability.

3. Artificial Intelligence and Machine Learning

• AI has been used for a long time in the IT industry, and its future is quite bright. Machine systems can accomplish the provided tasks and improve themselves to mimic human intelligence. Companies are using the power of artificial intelligence and machine learning to:
• Optimize business operations
• Improving the customer experience
• Controlled data processing
• Making industries cost-efficient
• Machine learning will help automate tasks, identify patterns, and increase work efficiency.

Furthermore, outsourcing companies can help you integrate the aspects of AI and ML to study a large amount of collected data to render customized experiences to end users.

4. Increased Focus on Cybersecurity

• The IT capabilities are recognized by how it provides security to its end users. Cyber attacks happen daily, with industry giants losing money to ransomware attacks and data breaches. Around 2021, many cyber-attack witnesses made companies spend massively on cybersecurity. The hacking attack occurs every 39 seconds, which means your company’s software and hardware are at complete risk.
• With the best IT outsourcing services, you can access global experts, real-time monitoring, and reduced cyber costs. Moreover, traditional outsourcing services providers also update their cybersecurity features by investing in modern SSL, VPN, and multi-factor authentication systems. They are up in arms to protect their client’s data from any security breach. The stepping up of the cybersecurity efforts will help combat security breaches and ensure the infrastructure is reliable.

5. Process Automation

• Process automation is one of the latest IT outsourcing trends businesses outsource to get hands-on global technical expertise and advanced tools. Automation means collecting, analyzing, and inferring the results from the collected data without human intervention. The IT specialist will use modern machines, tools, apparatus, etc., to carry out the daily tasks.
• A few outsourcing providers use RPA (Robotic Process Automation), an advanced process automation form, to record human tasks on their computers. Using RPA for business process automation tasks will help in increased cost savings, efficiency, speed of work, and scalability and encourages improved accuracy. It helps in elevating the services by optimizing the huge workloads.

Get Reliable and Robust IT Outsourcing Services!

Businesses benefit from outsourcing their IT-related services to an experienced IT consulting company like BoTree Technologies. IT Outsourcing has recently grown to cope with the fast-pacing digital transformation in society.

Outsourcing helps companies focus more on their core competencies, leaving room for modern developments. Furthermore, experts have the right tools and best industry practices. So they can deliver more secure and effective digital products.

Contact BoTree Technologies today for best in class IT outsourcing solutions.