The consequences of the pandemic have globally affected all over the world. As a result, new outsourcing trends have emerged. And the focus has moved from budget optimization aspects to other significant fields and processes: more tech advancements, more flexibility, and globalization. Outsourcing trends of 2021 seem promising and show that the industry is on the right path.
According to experts, the global IT outsourcing market in 2019 was estimated at $ 333.7 billion and is expected to reach $ 397.6 billion by 2025, registering a CAGR of 4.5% during the forecast period (2020-2025) (Deloitte report).
Remote work has become the “new normal” and even when the pandemic is over, most businesses will remain prone to this hiring model.
The global economy will feel the impact of COVID-19 and the increasing global recession in the next 2022. The cost reduction trend continues to be in the first place. And it poses challenges for organizations to provide the best data security and the most cost-effective ways to grow, scale, and progress.
Cloud solutions remain the main table stake for organizations. Those who have moved their infrastructure, functions and processes to the cloud will be better positioned to create faster and more efficient business solutions and stay one step ahead of the competition. Cloud and RPA solutions are becoming a main element of most outsourcing strategies. More and more companies are benefiting from cloud solutions. Along with the need for computing cloud resources, there is a need for data security to avoid potential threats.
Cloud solutions help organizations reduce operating costs, provide quick access to resources, increase efficiency, and store data securely.
Changes in business processes during the project, growing expectations and restrictions on the free movement around the world force the suppliers to become more flexible and adaptable.
Firms will now accelerate outsourcing processes as they learn to collaborate in a world where speed, quality, flexibility and cost are more important than geography. To be competitive, a service provider needs to create efficient plug-and-play solutions that integrate quickly, and enter into contracts that allow them to change as business priorities evolve.
Strategic partnerships is also a leading trend.
Along with the increasing demand for IT outsourcing, there has been an empowerment of these companies. The contribution of the third side to companies’ performance is on a dynamic rise, which causes a fundamental shift in their status. Given the across-the-board drive for long-term collaboration with external experts, outsourcers have grown out of their previous supporting role.
Instead, they are increasingly comprehended as legitimate team players who share all of the firm’s responsibilities. In addition, their employers are willing to delegate significant decision-making responsibilities to them, involving them in strategic planning, risk assessment and system architectural design.
A culture of remote work is gradually being introduced in companies and this helps them to gain access to high-level professionals from the most cost-effective destinations. In this regard, the number of suppliers from Eastern Europe continues to grow. This trend became evident a couple of years ago and will continue into 2022. Growth rates of 4-5 are higher than the global average and turn the IT industry in Ukraine, Poland, Belarus and Romania into a powerful player on the world market. Offering top-notch quality at affordable prices, outsourcers from this region maintain their leading position in the niche.
Finally, if you are outsourcing any part of your business, be sure to choose the right partner.
We will be happy to answer any questions or help you grow your business.
