All expert projections indicate that the future of IT outsourcing will continuously grow over the years. There will be an increased demand for contract IT with more businesses moving away from in-house specialists to outsourcing IT talents. The following are the top information technology outsourcing (ITO) market trends that will shape the future.
Artificial Intelligence Automation
One of the crucial IT outsourcing aspects is automation that is poised to trigger considerable changes in the future. Businesses are set to invest heavily in artificial intelligence (AI) and other robotic process automation (RPA). Since the recent past, AI has continuously evolved in unimaginable proportions.
In a recent study by GSA, more than 80% of respondents believed that AI and RPA would be of significant value within the next ten years. For this reason, there will be a massive demand for professional AI experts, data analysts, and expert data scientists. Routine tasks will be streamlined with the use of virtual machines.
Focus on Cybersecurity and Compliance
The past few years have witnessed the most extensive security breaches and massive cybercrimes ever. Today, businesses are turning their focus on cybersecurity and compliance through IT outsourcing. The issue of data security is now of the highest importance with great emphasis on complete data encryption.
Cybercriminals are posing newer risks to sensitive business data daily. They are shifting their attention to ransomware and other unethical cybercrimes. All companies must now invest heavily in IT Outsourcing to set countermeasures that protect their sensitive business data.
Shortage and Need for Cutting-Edge IT Skills
With increased technological developments, most information technology companies feel the pressure to remain highly competitive. From cryptocurrencies and blockchain to cybersecurity and robotics, the emergence of newer technologies has been overwhelming. For this reason, many companies will require to outsource more unique skillsets to run effectively.
According to past research by Gartner, IT spending was projected to increase to $3.8 trillion in 2019, a 3.2% rise from 2018. Shortage of in-house IT talent will be the primary reason for companies to outsource.
The Introduction of Alternative IT Outsourcing Options
According to a 2017 Statista report, China and India are the leaders in outsourcing, with approximately $150 billion in IT exports. During this period, these two countries experienced increased product development for different companies. These nations are expected to face intense competition from their European counterparts. The report also revealed that new IT outsourcing options would emerge from countries like Belarus, Ukraine, Romania, and Poland.
Trends and dynamics in Ukraine’s IT industry are constantly growing with many software developers cropping up. The country boasts of over 166,000 IT specialists with a likely increase in future. A recent PwC study revealed a 150% market rise from 2011 to 2015. It also predicted the possibility of reaching $5.7 billion by the year 2020.
Increased Augmented and Virtual Reality Projects
Augmented and Virtual Reality technologies are some of the main drivers of the global IT outsourcing industry. By 2015, the global Augmented Reality market valued at almost $3.33 billion. Various studies have projected it to hit approximately $133.78 billion by the year 2021 with an 85.2% growth rate. Global VR revenues are expected to rise to $75 billion by 2021, according to Greenlight Insights’ study.
There has been a conspicuous increase in VR/AR technologies lately, and this has mainly been witnessed in the mobile market. With applications such as Apple’s AR-Kits and games such as PokemonGo, mobile AR has been placed alongside headset-based devices such as Google glasses. The growth of these two technologies has been nothing but impressive, and it’s expected to improve even further in future.
Cloud Sourcing
With thousands of businesses moving to cloud, the demand for cloud computing is expected to rise in future. By 2020, the move towards cloud computing will affect over $1trillion in IT spending as predicted by Gartner. With the heightened demand for cloud outsourcing, businesses will require cloud platforms for data storage solutions. Service providers will necessarily be required to provide data centers and required infrastructure to facilitate all this.
Conclusion
The future looks promising for IT software developers as well as businesses. There are many other IT outsourcing trends that are expected to shape the future we dint mention here. However, these are the top six IT outsourcing trends that are expected to have a massive impact on the future.