As the report by Cybersecurity Ventures claims, there will be 3.5M open cybersecurity jobs across the globe in 2021. What concerns cloud, during the pandemic this sector has seen rapid growth and become stronger than ever. Thus, cloud skills are in demand as every tech company is pursuing agility to satisfy increasing customer demands and ensure business continuity.
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. Other service providers negotiated with local governments to ensure that power cuts to their employees’ homes-turned-offices would be limited or, at least, predictable. Value networks are connections you build to create value for your company or its processes. This process involves using software robots to replace humans with calculations, analysis, and report generation.
Cost reduction is again a top reason to outsource
Among the current IT trends that have been gaining momentum, the following are likely to grow rapidly soon. These technologies would witness widespread usage, and would naturally, have an impact on IT outsourcing. Grow your team and expand your software development capabilities with a reliable tech partner by your side. Be it by offering better quality, lowering the prices, or adding other benefits, companies seeking IT services can benefit from this competition. While most of the companies trusted outsourcing IT services to India to reap endless benefits, now, the same benefits are being offered by many other countries.
- Our offshore office in the Philippines lets you hire qualified offshore software developers without the hassle of recruiting them yourself.
- Companies that prioritize CSR are often recognized for their efforts and achievements through various awards and accolades.
- Only then can service providers hope to become trusted partners in companies’ digital transformations.
- Outsourcing your whole customer experience relies on a company having a good track record of managing customers, but if it is done correctly, it can take a lot of hassle away from your business.
- They want to centralize these processes within one outsourcing company to ensure cohesive operations.
- And since it’s time-consuming to upskill in-house teams, companies are outsourcing services to a vendor with expert talent in a desirable outsourcing destination.
Cloud platforms are an excellent way for businesses to improve their processes. While most of us are working from home, it would be difficult to protect the workforce against cyberattacks. Companies may also engage in charity work, supporting various social causes such as poverty alleviation, education, and healthcare. Corporate Social Responsibility (CSR) refers to a voluntary approach adopted by businesses to demonstrate their commitment to society and the environment.
Trend 1: Increased Focus on Security and Data Privacy
When working with an outsourced partner, it’s important to understand everyone’s responsibilities and the role they play in the relationship. This helps ensure that the relationship goes smoothly and that the outsourcing partnership is successful. For example, it’s essential that you understand how the system works, have a clear plan for communication and understand what your business needs to do to ensure technology outsourcing trends outsourcing success. According to Statista, the IT outsourcing industry is growing at a CAGR of 8.93% and will be worth a market volume of $551,956.3 million by 2026. As a result, they’re more likely to update themselves about the advancements in technology than an in-house team. Companies keeping abreast of emerging technology can use it to automate processes, increase efficiency, and simplify operations.
As a matter of fact, barely a fifth of IT companies employ these positions from a third party. Outsourcing statistics have announced a significant growth of the outsourced customer care services industry in the next couple of years. For now, more than 50% of all companies employ third-party customer support representatives to improve customer experience.
Companies want vendors to be more flexible
If you want to see how the story further unfolds and finally make a decision — you need to know these IT https://www.globalcloudteam.com/ determining the future of outsourcing. These questions were on my mind for quite some time and as the global pandemic brought everything to a standstill, these questions started nagging me even more. Until 2015, cost-cutting and availability of cheaper offshore solutions drove outsourcing. However, companies are not just outsourcing noncore activities but tasks that demand quality. Per a GSA-UK report, 35% of businesses outsourced for cost-effectiveness and 23% outsourced to improve customer experience, whereas 17% outsourced to transition from legacy IT to as-a-service models.
Cloud-based advancements will enable teams to have the tools to remain productive. As more workforces shift into a remote setup, this technology will help businesses collaborate better. It is important to include security as information is being shared remotely. With the workforce transitioning into digital offices, the use of cloud-based technologies will increase. Data security and the possibility of a breach will be one of the things organizations need to be mindful of. Outsourcing from multiple service vendors for different business needs has been a trend of the past.
Socially responsible outsourcing is the future
There are many companies and services out there that are cheaper if you outsource with them, especially if you are willing to look abroad. For instance, many call centers are outsourced to places where the costs to employ someone are much more affordable. If it costs $5 per hour to employ someone in India versus $20 per hour in the US, it makes sense to do this, particularly if the quality of your service does not drop as a result. Increased investments by several government bodies in the healthcare sector and the development of policies that improve the healthcare infrastructure provide lucrative growth opportunities to the market. Furthermore, partnerships and mergers between hospitals, physician offices, and medical billing enterprises also favour the market growth.
Outsourcing companies will need to train developers who know how to develop PWAs and keep them up-to-date. With the IT talent shortage in the US, many businesses are looking to hire elsewhere. It is no surprise that outsourcing became an emerging option for businesses. This allowed businesses to explore cost-efficient options in several countries with a rich talent pool.
IT Outsourcing Trends from 2019 to 2021
They should carefully negotiate contract clauses according to new procedures and back-end processes taking into account all the costs their implementation may presuppose. Given global changes 2020 has brought, outsourcing trends for 2021 will imply more agility, diversity, and automation. Outsourcing trends for 2021 seem promising, and the IT outsourcing industry has the potential to help companies cope with new challenges caused by the crisis.
To back this point, there is a GSA report that states 92% of companies that outsource development to India or other budding economies have realized the importance of outcome-based contracting. I have spoken to several companies that have been outsourcing IT services, product development, or web development for a long time. The majority of them plan to explore the multi-vendor approach, especially for IT outsourcing.
Demand for cloud-based technology
In the coming years, IT outsourcing companies can expect to get more business out of the booming startup economy and the burgeoning number of small and medium-sized businesses. As more startups are coming up with new digital solutions and small businesses are shifting toward enhancing the digital experience they offer, companies offering IT services can expect more business. In fact, the sudden boom in digitization has caused the SMBs that are in the prototyping stage to push their products forward for quick launch. Then, I surveyed outsourcing trends to date, searched the web, and studied a number of case studies and reports to come to a conclusion. There are certain trends that are expected to take a complete turn after the lockdown, and digital transformation or business automation will be a popularly-adopted strategy. India and China are leading the outsourcing bandwagon, followed by Indonesia, Malaysia, Nepal and the Philippines due to their cheap labor and operating costs.