Top 5 Most Innovative Outsourcing Technology Trends

IT outsourcing is expected to become an even more critical component of business operations by 2023. Businesses that recognize this trend and take action to capitalize on it now will be in a solid position to achieve success in the years to come. In the next few years, we predict that the demand for cybersecurity services will continue to grow. Providers that can offer these services will be in high demand, and we expect to see more providers focusing on this area of specialization. Our Onex framework is a suite of leading IT/ITES products that provide customized solutions to various industries such as banking, hospitality, pharma, media, and healthcare in 29+ countries worldwide. With a team of 2000+ experts and partnerships with Azure/Oracle/AWS multi-Cloud, Onex provides end-to-end solutions that cater to business requirements.

This allowed businesses to explore cost-efficient options in several countries with a rich talent pool. Take note of what’s trending today and what we need to look out for in the coming months. In simple words, Google Docs is a perfect example of the technology used in blockchain. You create a doc, share the doc with your peers – It’s not copy-paste content, the doc is just distributed among those who have access and all the changes would be saved globally. This time-saving concept will enable your outsourcing team to work on other core-related challenging tasks like strategy development, relationship building, and decision making.

Variety of services

At the same time, companies said that they are looking to service providers to shoulder more risk, particularly when it comes to maintaining the continuity of business operations. While many companies rely on a global footprint of service providers to prevent service breakdowns, that model doesn’t factor in the possibility of a pandemic washing over the world. Service providers, particularly in outsourcing hubs such as India and the Philippines, were hit hard, although they did their best to cope. For example, a service provider in India rented an entire hotel to ensure that its employees could work in a bubble. The company provided accommodations, access to food 24-7, stable broadband connections, and, later, regular COVID-19 testing.

Outsourcing business processes like reconciliation, pend management, and human resource management, can help companies gain a competitive edge in the market. The increased reliance on managed IT services providers allows companies to maintain a focus on their core business activities without the burden of managing day-to-day IT operations. Ultimately, these technology outsourcing trends demonstrate a movement towards a more innovative, efficient, and interconnected business landscape.

Lack of technical knowledge or velocity

Cloud computing services are a great solution for many businesses because of their low monthly costs and low overhead. They will not have to worry about making an upfront investment in expensive hardware and will be able to use their resources to make other investments. Cloud computing services provide other benefits, such as enabling teams to work from anywhere. Businesses that want to stay ahead of the competition invest in automating their business processes.

2022 was a leap for the IT outsourcing industry, with over $4.4 trillion spent on this industry, according to Gartner. Cloud computing, blockchain technology, artificial intelligence, and other similar technologies were some of the IT Outsourcing Trends in 2022. The evolution of outsourcing can be traced back to the Industrial Revolution when companies began outsourcing certain tasks to save time and money. The emergence of telecommunication technologies, such as the telephone, fax machine, and email, made it easier for businesses to communicate with their outsourcing partners. Outsourcing has been around for decades, and technology has played a crucial role in making it possible.

Remote work

It is imperative that your outsourcing partner values security as much as you do. Outsourcing companies have systems in place to protect their and their client’s data. This entails the employment and training of qualified individuals regardless of gender, disabilities, or social status. And by being socially aware, they could also liberate individuals from economic disadvantages.

• It allowed companies to change velocity as an immediate answer to market changes.
• They are responsible for the list of product functionality requirements (product backlog), which must meet the requirements of the business.
• This might range from straightforward duties such as planning or designing mockups to more involved tasks like programming and web development.
• Additionally, Osource has successfully managed business processes like finance and accounting, human resource management, and reconciliation using Onex platform.
• In today’s digital world, hacking, cyberattacks, and data breaches are all too common.
• In fact, around 80% of logistic leaders plan to increase their outsourcing budget by 5%.

Japan and Canada are another two HR outsourcing markets that will grow at a 4.4% and 4.2% rate during the same period. Job outsourcing helps US companies be competitive in the global marketplace. Technology, call centers, human resources, and manufacturing are the four most often outsourced industries. Outsourcing statistics for 2021 show that application development is one of the most frequently outsourced IT functions. Simultaneously, data center operations, network operations, help desk, and desktop support are the four least outsourced IT functions in 2021. In this section, you will find more about key trends that will affect both the global and the US outsourcing market in 2021 and beyond.

Contact CSM to Find Out if Information Technology Outsourcing Makes Sense for Your Business

These are just some statistics that can help us have a clear insight into the outsourcing rates. More companies are leveraging AI and automation technologies to streamline business processes, improve customer interactions, and optimize decision-making. Outsourcing vendors specialize in these technologies, allowing businesses to tap into their expertise without developing in-house AI capabilities. As a result, businesses in many sectors are expected to look for IT service providers with experienced cloud engineers and developers familiar with cloud infrastructure and management. These professionals will assist companies in preventing cloud bill shock and ensuring the safety of their data. Outsourcing occurs when a firm hires another company to fulfill its functions.

CITP is the independent standard of competence and professionalism in the technology industry. After thoroughly researching the regions to outsource IT solutions, we’ve curated these countries below. Machine Learning(ML) is a branch of Artificial Intelligence (AI) that enables machines & gadgets to learn from the data and provide results based on the learning or data analysis. Blockchain tech is a decentralized ledger that can store information in blocks forming a chain enabling every user to access the data without any centralized controls.

Top trends impacting software development outsourcing in 2023

The disadvantage is that you can’t delay projects due to the dependence on other vendors. Companies outsource if they cannot handle one part of their business process. Socially responsible outsourcing has the potential to drive global development by lifting individual economies through workforce empowerment.

Recent years have shown how much the relationship between businesses and outsourcing has produced technological marvels. And, there are a lot of observable trends that yield business success through outsourcing. Analysts have recently claimed that 5-10 per cent of US and European IT software outsourcing will be diverted from India to China in a few years’ time. If you’re considering outsourcing your software development, it will help you get started right. If you’re currently outsourcing, it will provide benchmarking and best practice ideas.

Blockchain Technology

So now, let’s consider which solutions will be at the peak of popularity in 2023. In particular, in the outsourcing industry, it has been predicted that robotic process automation (RPA) will continue to grow at an explosive rate. RPA is a type of software that can execute tasks and jobs typically done by humans. RPA can answer customer queries more quickly with fewer errors than humans and can also handle technology outsourcing trends repetitive tasks like invoice processing or data entry. Moreover, remote work has been one of the fast-evolving business process outsourcing trends since COVID-19 and will continue to grow in the coming years. Artificial Intelligence (AI) and Machine Learning (ML) are transforming outsourcing by enabling companies to automate repetitive tasks, optimize business processes, and improve customer service.