Top 5 IT Outsourcing Trends in 2019

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Outsourcing has been changing the global industry in recent years. It has now become the new normal and experts suggest that it’ll continue to grow in the future. According to Statista the revenue of IT outsourcing in 2018 equals to $62 billion, which is the biggest part of all outsourcing services.

The digital revolution and personalization are changing the way IT business operated. The improvement of technology would definitely impact the future of IT outsourcing as well.

Report about outsourcing in 2020 shows that 70% of the surveyed companies are going to outsource more in the upcoming years, 35% of which plan to significantly do so. This leads to 84% of service providers expecting the outsourcing industry to grow and almost half of them believe it would remarkably to so.



More and more companies tend to look for independent contractors for their information technology and software development needs. In this article, we’re going to have a look at the top 5 IT outsourcing trends in 2019, that you need to be aware of.

Shifting away from single-vendor outsourcing

Pretty soon there will be no big company that is able to ensure all technical skills needed to run operations in the new business models. It’s already starting to get impossible to supply all needs with the help of in-house experts only. This will make the business look for partners that are deeply specialized in specific areas.

IT outsourcing would have to move towards narrower specialization, instead of doing as much as possible. Businesses that outsource to single companies have decreased a lot, so the trend has already started.

However, the companies that manage to gather a wider range of experts and increase the quality of their services at the same time will have a major advantage among competitors. You can find out what are the toughest challenges that IT Outstaffing faces in 2019 here.

Outsourcing core business service

The Global market for Business Process Outsourcing (BPO) is projected to reach $220 Billion by 2020, due to the adoption of new value-added BPO services and exploration of companies into unconventional niche markets, according to Global Industry Analysts. That makes this one a trend we couldn’t miss.

Relationships between suppliers and customers are expected to become more trustworthy. Outsourcing of non-core services to core business operations. Companies feel the need to tap into their expertise to keep business competitive. The outsourcing of non-core activities will no longer be sufficient for the ones that want to be ahead of the competition.

Increasing focus on cybersecurity

All expert and forecasters agree on this one. The issue of data security has raised public awareness in the last few years. Full encryption of all data sets is now demanded. Cybercriminals are not left behind of technological progress. They also gain new skills, putting sensitive data at even greater risk.



Some innovative IT companies are implementing multi-level security approaches with the help of outsourced cybersecurity services. This guards business data and meets compliance standards. In fact, the amount of outsourced security work has increased during last year.

Automation of manual processes through Artificial Intelligence

The intelligent automation is one of the key trends in IT outsourcing for 2019. Artificial Intelligence will be more and more used to streamline routine tasks in all industries. Huge investments in this sphere are expected.

2019 seems to be the year that takes AI assistants and transforms them into powerful tools beyond smart speakers. For that reason, the growing demand for data scientists and AI experts is expected in the very near future.

Less focus on reducing costs

Last but not least, the most important aspect of the business – costs. Outsourcing development will always be about cost reduction. The thing is is that it will no longer be a deciding factor when choosing an offshore IT partner. Instead, the relationship will be more experts and quality of service driven, as you might guess from the previous trends.

The focus will shift from cutting costs to delivering value. IT outstaffing companies are slowly becoming partners to their customers. Value-added services are most important in 2019. Even the risks of projects are now shared.

Conclusion

Of course, there are a lot more trends to watch on and it’s important to know how IT outstaffing changed over the course of the years.



2019 seemed like a promising year for business and software developers. Now that half of it has passed and looked at the above trends, we can definitely say it’s meeting experts expectations. Businesses are now looking for partners who can help them move forward, instead of just people that can get the job done for low costs.

On the other hand IT outsourcing vendors have started to adapt to the higher demands to meet their customers’ expectations. They’re becoming collaborative, while still competitive. Keeping up with the trends is essential for both sides. For clients, so they can find the best provider that can meet their needs and for vendors who need to improve their strategies in order to have an edge on competitors.

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