Top IT Outsourcing Trends to Expect in the Near-Future
IT outsourcing is the solution for the companies that are looking for access to talent and experts with niche skills. Large labor markets all over the world are witnessing a sharp focus on new skills. Companies across different industries are making digital solutions essential parts of their growth strategies. Therefore, IT companies are helping them to integrate these solutions that often fall under unknown domains. Numerous surveys confirm that more companies, small and big will opt for outsourcing their IT services to expert providers.
If you’re looking to start an IT outsourcing partnership pay attention to the new trends expected to heat up in the near future.
Value setting more important than cost reduction
Besides the economic efficiency, which has always been a key driver in outsourcing development, value addition and the vendor-client relationship is going to get more importance. Great service and quality products will help to find the right vendor that stays competitive through new technology integration. In the meantime, the sellers will begin to focus more on the vendor’s service quality and delivery. Meanwhile, partnerships will be driven by human factors rather than cost reduction.
IT Skills Shortage
The talent shortage is a rising concern in many countries. While IT specialist job openings are increasing, the existing talent pool is shrinking faster. Major companies are attracting highly qualified experts, and invest in retaining top talent.
In these conditions, the lack of in-house IT talent is one of the main factors why the IT outsourcing sector will expand further in new outsourcing destinations other than India and China.
Automation and AI
Developed countries are facing a big challenge related to low fertility rates and an aging population. These also have an impact on talent shortage. Hence, automation and Artificial Intelligence will aim to fill the gap. Thus, IT outsourcing companies will incorporate automation, especially robotic process automation (RPA) and AI. These solutions are no longer the domain of a few providers. They can help to improve services and products while reducing the chances of human error.
Outsourcing core competencies
The satisfying experience in service delivery by the vendor and shared responsibilities can encourage businesses to outsource their core services if necessary. Normally, outsourcing consists of delegating key business functions such as big data, HR, accounting, finance, and legal, marketing, and much more. However, a shift is expected by those that have already established trustworthy relationships. IT outsourcing companies are expected to have a major role.
New alternative outsourcing destinations
Eastern Europe is the biggest competitor to markets like India, China, the Philippines, or Mexico. The IT industry is growing faster in the region, while many other factors such as safety, talent availability, cultural affinity to western cultures are making countries like Poland, Bulgaria, Romania, and Albania top emerging outsourcing destinations.