IT Outsourcing trends In 2023: What to Expect?

Trends are the things that give us an idea about the progress and the direction of evolution. It can be a certain industry, technology, or sphere. Usually, trends depend on challenges and the needs of the target audience of the industry. It is the main reason to consider the trends and put them into place in your strategy. Outsourcing has many trends for 2023 that hint at the shape of outsourcing in the next year. It is necessary to get acquainted with the trends. So if you have plans to outsource soon, you will start outsourcing successfully!

Is outsourcing still worth it?

Our fast-paced world changes every second. Sometimes we can’t follow all the changes and hurry up with them. It is a no-brainer that such a question emerges about the profitability of outsourcing. According to Deloitte, spending on IT outsourcing will increase to 519 billion dollars in 2023. For a second, it is 22% more than in 2019. The numbers show that IT outsourcing develops yearly and makes more companies use it. Except for the growing tendency of outsourcing, it also has many other advantages.  

• Budget saving. Hiring specialists from other countries means getting cheaper services. The main advantage is what you get for the lower price. With IT outsourcing, you get a decent quality of work with no extra pay.
• Outsourcing reduces the workload on the in-house team. It allows focusing on more vital tasks. According to YouGov, approximately 32% of British B2B companies outsource IT support. It is the highest percentage among other services.
• Access to talent pool from other countries. According to Computer Economics, 60% of organizations outsource application development.

Those facts are evidence of the relevance and profitability of using outsourcing not only in 2022 but in many further years.  

What are the outsourcing trends in 2023?

1. Cloud solutions (SaaS,PaaS, IaaS)

 Cloud solutions are gaining popularity, and in 2023, they definitely will be in the top trends. According to VMware, application integration with public cloud services is the highest priority in the next few years. Such a demand for cloud solutions due to their many pros. Some of them are:   

• Cost savings. The services use a pay-as-you-go system. When you pay only for the number of services you need and no more, extra spending is impossible;
• According to RapidScale, 94% of businesses claimed that security improved with cloud solutions. It only proves that cloud solutions benefit you with the security of your data;
• Flexibility and mobility.

In cloud solutions, there are:   

• IaaS offers clients services of computation, storage, and networking. You can switch the whole of your infrastructure to the cloud. It will reduce your spending on infrastructure maintenance;
• PaaS gives access to operating systems, development and testing tools, and database management systems.
• SaaS offers clients ready-to-use cloud software. The provider handles maintaining and updating the software.

2. Outsourcing to Eastern Europe

 Now Eastern Europe outsourcing is more appealing for companies worldwide than ever. Eastern Europe outsourcing companies are famous for their:

• expertise;
• professionalism;
• English language level;
• a fair price for the work compared to the local specialists in the USA, for example.

One of the most valuable countries in Eastern Europe for outsourcing is Ukraine. Many Ukrainian outsourcing companies are well-known for their:   

• A big pool of talents with more than 200.000 specialists across the country. Most have outstanding skills and availability of popular programming languages. Moreover, most of the specialists have higher education in their fields. Every year in Ukraine 20.000 specialists graduate from universities;
• A high level of English language knowledge. It is a strong advantage of Ukrainian outsourcing. The English language removes language barriers between outsourcing companies and their clients;
• The ability to work under stress and emergencies. It is what Ukrainian outsourcing specialists and companies have proved this year. After the beginning of the russian invasion in February 2022, companies are still working. Ukrainian companies have adjusted to working under shelling and the absence of electricity. Still, they follow the deadlines and provide their clients with high-quality services.
• Cost-effectiveness is another major advantage of working with Ukrainian IT outsourcing companies. You can save a huge share of your budget without losing the quality of the services;

3. Long-time cooperation

 Outsourcing cooperation models open access to a vast number of specialists worldwide. It is fine to hire new specialists or outsource companies for each project or set of tasks. But is it still popular amongst software development companies? As trends show, it is not popular anymore.

Nowadays and as we see in the future, more and more companies are trying to make long-term work relationships with a particular service provider. When you work with a single company, you build a trusted relationship with the company. It is a company that knows all the ropes of working with you, and both have an aligned working process. 

4. Data protection

While digitalization and cloud services gain popularity and expand, as well as cybercrimes. It is a significant and dangerous threat. Data leaks, cyber-attacks, and data breaches are not jokes. That is why protection will be not only one of the most critical trends in 2023. It will be a hot topic and development direction for further years. We are sure that investments in security will be growing. According to Statista, the global security market was 183 billion dollars in 2020. Forecasts are telling us that in 2030 it will be 538 billion dollars.

5. Automation

Active technology development allows not hiring a separate specialist to do the job. Now the job can do AI. When you use automation, it benefits by reducing costs and increasing productivity. As a result, it positively impacts the revenue of the company.  

As we see, trends indeed show us in what direction the development of the IT industry will move in the next year. Cloud solutions, outsourcing to Eastern Europe, long-term cooperation, cyber security, and automation will be the main things you have to pay attention to mainly.

References: 

• www2.Deloitte.com
• yougov.co.uk
• computereconomics.com
• rapidscale.net
• statista.com