IT Outsourcing Trends in 2022
What are the IT outsourcing trends to look out for in 2022? Take note of what’s trending today and what we need to look out for in the coming months.
Recent years have shown how much the relationship between businesses and outsourcing has produced technological marvels. Their dynamic works when done right and at great timing. And, there are a lot of observable trends that yield business success through outsourcing.
Following the latest innovations in technology, companies in various industries adapted to digitalization to drive global economic growth. Businesses have also capitalized on technologies that further enhance productivity. Ventures such as IT outsourcing have been a very prevalent trend. Let’s delve further.
IT Outsourcing Trends from 2019 to 2021
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.
Undeniably, the impact of IT on businesses has turned the world around. Not only are companies able to automate system processes, but they can also outsource parts of their business processes remotely. Here are the IT outsourcing trends we’ve been seeing.
1. Developing Progressive Web Apps
PWAs are web applications that provide users with an application-like experience using a web browser. It combines the best features of web and native applications even having responsive UI/UX. This way, you can still experience using the app without even installing anything on your phone.
PWAs are ideal for businesses that want to reach users who don’t want to download too many apps. Developing web apps is easy since developers don’t need to work on complex code. Rather they use a simple interface or low code platforms to deliver these types of applications. Businesses can now achieve their goals faster and meet their client’s demands.
Users don’t need to download applications, whether they are using an Android or iOS device. Besides that, companies can drive down costs as they no longer need to develop separate apps for each platform.
Businesses will likely look for outsourcing companies that can supplement this tech. With the rise of PWAs, the demand for web developers with this skill will also increase. Outsourcing companies will need to train developers who know how to develop PWAs and keep them up-to-date.
2. Smart software for smarter operations
Technological advancements gave rise to the Internet of Things (IoT). Most of the everyday devices are now able to communicate via the internet to perform desired tasks. IoT is the network that helps these devices send and receive data. Because of this, companies leverage smart software to interlink workflows with people.
The research and innovation of IoT are gaining more traction over time. These advancements have allowed people to:
- Gain access to inexpensive technology.
- Connect with devices with ease with the use of cloud computing services.
- Businesses can efficiently gather insights with faster data collection, transfer, and storage.
- Aid in the advancements of NLPs with the use of digital personal assistants in their smartphones or a smart home hub like Google home.
IoT is applicable in the industries such as IT, medical, manufacturing, government, construction, transportation, and more. We can expect that more businesses will capitalize on its popularity to innovate outsourcing processes.
3. Socially responsible outsourcing is the future
Socially responsible outsourcing has the potential to drive global development by lifting individual economies through workforce empowerment. The future of businesses also means that owners should be socially conscious of the way they provide quality service to their customers.
This entails the employment and training of qualified individuals regardless of gender, disabilities, or social status. In outsourcing, businesses could save on hiring and employment costs. And by being socially aware, they could also liberate individuals from economic disadvantages.
4. Multiple specialties, one outsourcing company
Outsourcing from multiple service vendors for different business needs has been a trend of the past. The disadvantage is that you can’t delay projects due to the dependence on other vendors. If one vendor fails to deliver, all other processes will suffer. Companies outsource if they cannot handle one part of their business process.
Businesses are now leaning towards partnering with outsourcing companies that offer most, if not all, of their needed services. They want to centralize these processes within one outsourcing company to ensure cohesive operations. That said, the demand for outsourcing companies with multiple specialized services under one roof will grow.
IT Outsourcing Trends to Look Out for in 2022
The newest outsourcing trends contribute to critical improvements in the way you do business. With these advancements, your goals, spending, and business strategy would change and improve. Nevertheless, all of these improvements will help keep your business current. Here are some of the most notable IT outsourcing trends in 2022.
1. Increased efforts in security
As technology evolves, security goes along with it. With the usage increase of cloud computing services and IoT, companies face the anxiety of data theft and security. Cybercrime has increased to 600% since the pandemic hit. This is why it is necessary to focus on cybersecurity to reduce losing important data and information.
Hackers are actively looking for ways to get access to data. While most of us are working from home, it would be difficult to protect the workforce against cyberattacks. Valuable company data might be at risk.
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.
2. Cloud Services will gain popularity
Cloud platforms are an excellent way for businesses to improve their processes.
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. That is why security is a critical area to look at.
A study by Gartner found that businesses spending on cloud services went up to 6.3% in 2020. They predict a year-on-year growth of 18% only for cloud computing services. Companies prefer to use cloud services because of flexibility and scalability. Additionally, Statista revealed that the cloud computing market increased worldwide and is expected to reach $482 billion by 2022.
There is also AI in cloud computing services. From a simple google search to photo filters, technology collects all data and stores it into data centers then moved to our devices. Cloud computing plays a role in developing the infrastructure to deliver these services to its users.
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.
3. Remote work as a necessary option
When the pandemic hit, many companies were forced to allow their workforce to work from home. A study by ConnectSolutions revealed that 77% reported increased productivity when working offsite, while 30% reported that they finished more work in less time.
Even with work arrangements in the new normal, candidates are more likely to accept a job offer if working remotely is an option. More HR professionals are leaning towards having a fully remote team or a hybrid work setup.
A study by Gartner said that 51% of the global workforce would transition to remote work by the end of 2021. This means that more organizations are open to hiring anywhere in the world. Companies now have access to a global workforce, and job seekers are more confident in sending applications to different locations.
Remote work also increases the level of satisfaction for employees. This setup is preferable to people willing to adopt a digital nomad lifestyle. Remote work also helps qualified candidates who are living in areas with few tech-related work opportunities. There is a high possibility for employees to apply to a company that provides a fully remote work option.
4. Artificial Intelligence and Automation
In connection to the IoTs, business processes automation will continue to grow in the years to come. Businesses will be reliant on automated processes aided by AI and machine learning.
AI is one of the top outsourcing trends in the IT industry. This trend, when used right, increases efficiency and productivity across business processes and reduces costs. Making use of this technology helps handle and analyze big data.
Businesses that want to stay ahead of the competition invest in automating their business processes. Statista predicts that the AI software market will grow and reach $126 billion by 2025.
This process involves using software robots to replace humans with calculations, analysis, and report generation. Rather than worrying about how to build their own AI automated systems for data analytics, businesses would outsource it instead. That’s why outsourcing companies should also be ready to provide business intelligence services.
Another trend in AI is how it works with cloud computing. The evolution in the development and use of AI in computing is built on machine learning. AI can now be trained to predict success using old data and give suggestions on how to improve processes.
5. Blockchain Services on the rise
Statista reports that blockchain has taken the business world by storm. The global spending on blockchain solutions forecast shows that it will reach almost $19 billion by 2024. This helps companies have a tamper-evident electronic ledger that is perfect for the following operations:
- Data validation
- Data access
- Identity protection
Even though blockchain is a comprehensive security measure, it is not immune to hacking. Decentralized apps have a better line of defense compared to other cybersecurity measures. Hackers will need to extend their efforts to alter the chain of blockchain networks.
More companies are looking at similar platforms to incorporate it into their services or products. They find that when more people use blockchain services, the more secure it becomes. This explains the need for experts in the field with decentralized apps (dApps) and software engineering in cryptography projects.
Currently, blockchain professionals are scarce, especially in dApps and NFTs. Outsourcing companies can hire these experts or train those who want to diversify their skill set.
Where to Outsource?
As the IT industry grows with reliable software solutions, there is still one big problem to fix. ”Where can I find the right people to work with?” is a common question asked when you’re new to outsourcing.
Outsourcing is a process where you hire an external party to fulfill goods or services that you can also do in-house. Companies that provide outsourcing services have access to skilled talents who live in different parts of the world. They are the ones who are responsible for payroll, employee management, and ensuring the delivery of quality software products.
Asia has become a hotspot for outsourcing and is gaining attention in the outsourcing industry. This is because the pay rates are usually lower than the other regions. Many of its countries are quite popular in the global outsourcing industry. India, Singapore, and the Philippines are among the top-performing countries in the region.
These are only some of the locations where offshore outsourcing is available; nearshoring is also an option. Essentially it will depend on your business priorities and strategy. You should have an awareness of what to look for and where. This will help you make the right decision for your business in the long run.
Work with the Right Outsourcing Partner
IT outsourcing trends continue to evolve throughout the years. Some technologies have improved, with some gaining popularity. But all of them have progressed to adapt to changes in the way people use technology. It just goes to show how dynamic the IT industry is.
With innovations in technology and the lack of skilled developers, the workforce demands continue to increase. It might be too challenging for your in-house development team to keep up with the project demands. Your developers might currently be engaged in a project or just don’t have the right resources to train themselves.
At Full Scale, we’ve already created the solution for you. Our offshore office in the Philippines lets you hire qualified offshore software developers without the hassle of recruiting them yourself. You no longer have to manage the workforce. We’ll do all the heavy lifting.
We qualify candidates from recruitment to onboarding so you only get the best from a qualified pool of applicants. All you have to do is find the software developer who has the right skill set, and you’re good to go. Talk to us to find out more about how we can help you achieve your business goals.