Outsourcing was heavily attacked in its early days, as with many revolutionary techniques. Now it’s time to address the big question: What will be the IT outsourcing trends in 2022? This article will walk through 7 main outsourcing trends along with their implications for businesses
What Will Be The IT Outsourcing Trends In 2022?
Global IT Spending Is Expected To Grow
First, the amount of money spent on information technology will rise worldwide. Gartner forecasts that the IT services segment – which includes consulting and managed services – is expected to have the second-highest spending growth in 2022, reaching $1.3 trillion, up 7.9% from 2021 (see table below).
Source: Gartner (January 2022)
Moreover, the COVID-19 pandemic accelerated this divergence. All growth in traditional technology spending (hardware, software, services, and telecommunications) over the next five years will be driven by just four platforms: cloud, mobile, social, and big data/analytics.
Meanwhile, cost savings from cloud and automation will result in increased spending on emerging technologies such as AI, cloud-based, IoT, and blockchain. Additionally, next-generation security in conjunction with new technologies will continue to drive significant growth.
The Scope Of Remote Work Increases
Second, since the outbreak of the pandemic, there has been a significant increase in the use of remote work. The rise of remote work will have a significant impact on the growth of outsourcing. Companies that were previously opposed to hiring a remote team abroad are now more likely to be interested in and less hesitant to outsource certain functions to a third party at a lower cost.
With remote work becoming the new normal, businesses are looking to outsource a broader range of projects and use remote working collaborations to hire talent while significantly reducing costs. This means that there are numerous new opportunities for growth and expansion for offshore IT outsourcing services.
See more: OFFSHORE IT OUTSOURCING: FROM COST CUTTING TO GROWTH
More Organisations Are turning To Cloud Computing
Third, cloud computing has grown at a rapid pace since its introduction in 2006. Cloud computing provides lots of benefits, such as enabling teams to work from anywhere. This service became trendy and is expected to continue in the coming years. According to Statista, the cloud computing market will be worth $482 billion by the end of 2022.
Therefore, cloud computing services will continue to grow in popularity. Cloud computing services are a great solution for many businesses because of their low monthly costs and low overheads. 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.
As the world moves toward cloud computing, more and more businesses will look for providers who provide on-demand cloud computing services. This trend is anticipated to increase demand from businesses across industries for cloud engineers and developers who are familiar with cloud infrastructure and management.
More Businesses Are Using AI
Fourth, when it comes to the IT outsourcing trends that will dominate in 2022, AI is a hot topic. AI can significantly simplify business processes by handling massive amounts of data and mining it to provide better user experiences. They reduce the average handling time for customer complaints, allowing customer service executives to focus on more complex problems.
AI also enables businesses to gain greater control over their data and processes, intelligently integrating all areas of business. As demand for AI grows, companies are looking to outsource AI-driven projects or want outsourcing service providers to incorporate strands of AI into their existing processes.
Because not all businesses can develop and implement machine learning and AI into their software on their own. They will outsource these functions to providers with subject-matter expertise to implement these functions. Outsourcing service providers are increasingly incorporating AI components into their applications and processes to make them smarter.
Demand For Blockchain Services Is Expected To Grow
The blockchain is a decentralized ledger that records all transactions. Although this technology has existed for years, it was Bitcoin that brought the concept to the mainstream when it became the first cryptocurrency to use the blockchain as its underlying platform.
Since then, numerous other businesses have begun utilizing similar platforms to market their services and products. Experts predict that this trend will continue to accelerate over the next few years, as more businesses learn how to integrate blockchain technology into their operations.
Cybersecurity Specialists Are In Increasing Demand
Next, the popularity of cloud computing, mobile devices, and the Internet of Things has created a slew of new opportunities. However, it has exposed businesses to previously unimaginable security threats.
In today’s digital world, hacking, cyberattacks, and data breaches are all too common. Indeed, the number of connected IoT devices has increased by 9% to 12.3 billion globally. This massive number complicates the task of protecting these devices from hackers, resulting in an ever-growing demand for cybersecurity professionals capable of keeping up with this fast-paced industry.
Besides, in the coming years, IT outsourcing tends to offer a broader range of cybersecurity-related services. A growing number of businesses will be looking for software engineers, distributed application developers, and information technology security experts who can assist them in remaining one step ahead in this area.
RPA Increasingly Supports Human Labour
Robotic process automation or RPA is a type of software technology that enables the building and managing of software robots with more intelligent functions. Basically, machines are programmed to perform basic repetitive tasks. One Statista report predicts that the market for RPA will grow to $13 billion by 2030.
Data entry and transcription are examples of simple tasks that can be automated through RPA. This is helpful in workplaces experiencing operational stress brought on by the pandemic and requiring support for human workers. It also leaves employees to focus on core areas of expertise and more complex projects.
Companies will want to outsource RPA in 2022 and beyond because it helps protect them against restrictions and lockdowns caused by the pandemic.
People Highly Favor Progressive Web Apps
Progressive web apps or PWAs are web pages that are similar to apps and can be opened via a browser on mobile devices. They function much like native apps do, except users do not need to install them onto a device.
The appeal of PWAs is that they can be viewed on almost any device, meaning users can switch between web and mobile apps. Users who prefer to access apps through mobile devices (and may own more than one device) get a better user experience.
For businesses, the advantages of using progressive web apps are that they are simple to create and maintain. They eliminate the need to create mobile versions of the apps, and they allow the implementation of responsive design.
Eastern European Vendors’ Subsequent Increase
The last one, Eastern Europe is already a popular destination for IT outsourcing due to its lower costs, high-quality technical education, and abundance of talent. However, the region is gaining increasing attention from multinational corporations. Eastern Europe is home to vibrant IT communities. The region’s talent is employed by world-leading companies such as Google, Microsoft, and Amazon.
Additionally, with the exponential growth of the startup ecosystem, Eastern Europe not only solidifies its position as a top IT outsourcing destination but is also poised to claim a larger market share in the coming years.
Further reading: [2022] IT OUTSOURCING – MAJOR RISKS AND HOW TO BALANCE WITH REWARDS
The Bottom Line
Several software development trends have impacted the IT industry as well as our lives. More companies will seek out AI, cloud computing, blockchain development, or cybersecurity outsourcing providers in the future. Therefore, it’s reasonable to plan on implementing at least one of these in your business. The best way to accomplish this is to form an offshore development team.
Innotech is a well-established software company in Vietnam to serves various clients in Vietnam, Japan, America, Australia, and Singapore. We translate these advanced technologies into value for our customers through our professional solutions and services business worldwide.
When partnering with Innotech, we will provide the right talent for your project to expand your team capacity in the long run. Your in-house team will work with experienced developers in various fields. Contact our team of experts if you have any queries or concerns about offshore software development and we’ll be more than pleased to assist you.
