Global trends in IT outsourcing

Artificial intelligence, cloud computing and robotic process automation; these technologies and many others are slowly changing the IT world and  IT outsourcing with it. We’ve made a list of the current trends showing how technology affects the recruitment of IT specialists and what it brings to companies and contractors.

Do you know what the biggest barrier to fast development of modern technologies is for many companies? A lack of available IT experts.  A survey by Gartner published in 2021 shows this, and the trend continues this year. According to MIT Technology Review Insights, last year 64% of global IT leaders said that there is a shortage of IT specialists for their projects.

It’s therefore no surprise that IT ousourcing has experienced exponential growth in recent years. According to Statista, the IT outsourcing market will reach a value of over USD 512 billion in 2024. Four years later, we expect this number to rise to about USD 778 billion. Outsourcing is thus becoming a popular strategic solution around the world due to its ability to reduce costs and increase revenue for brands. In addition to saving the time and energy of internal employees, it is also a source of new innovative ideas that give companies a competitive advantage. 

However, the services that companies hire and the forms of cooperation they enter into with external specialists are changing. The less valued routine tasks they once outsourced can now be entrusted to modern technology. What they expect of IT specialists are high-quality services based on expertise and knowledge of the most modern methods.

6 trends that are globally shaping IT outsourcing

1. AI and machine learning software development

Artificial intelligence allows companies to use predictive analytics to predict market trends, customer behaviour and operational issues, while chatbots and AI virtual assistants can process huge numbers of questions simultaneously, making sure customers get immediate answers. AI also drives translation tools that facilitate global collaboration. 

Machine learning technology includes software systems capable of analysing data and offering useful insights. ML is commonly used in recommendation tools, dynamic pricing, fraud and cyber threat detection, optimisation and monitoring, and quality assurance.

The number of requirements for IT specialists capable of managing and programming these technologies is logically increasing in outsourcing. 

2. Remote? Yes! 

Global companies are increasingly opening up to remote work, thereby allowing themselves to also take advantage of foreign   talent. This greatly expands their options of whom and how they outsource for IT projects. They need their cooperation with an agency to be more like a partnership than a classic supplier-client relationship. Together they decide who is suitable for an IT project, or handle remote onboarding and communication between the company and the contractor in real time.  

The trend of working from home has also placed greater emphasis on the mental health of people working on projects. Companies are increasingly encouraging the comfort of remote and outsourced teams to ensure sustained productivity and prevent burnout. While mental health care was previously only provided for internal employees, today many companies also provide it for external outsourced IT experts.

3. Cyber security

As brands rely on digital platforms, the threat of cyberattacks, data breaches and fraud grows. Companies are therefore trying to modernise their infrastructure and digital security in real time. In addition to hiring an in-house team, they outsource specialists to secure their databases, internal process data or websites – from configuring an SSL certificate to mitigating DDoS and malware attacks.

4. App development

The number of industries that need cross-platform applications to reach their target audience, in either desktop or mobile version, is increasing. The demand for them has been growing dramatically for several years, and this trend is continuing this year as well. For companies that want a platform-independent application, .NET has become the first choice. This year is therefore providing a number of prestigious projects for freelance software developers who specialise in it. 

5. Expansion of cloud computing

Cloud computing is also changing IT outsourcing. Teams spread across the globe can share files and access them in real-time, which greatly improves their communication and collaboration. It also offers reliable data backup and recovery options, ensuring business continuity and great resilience in the event of unforeseen events. Another advantage of flexible cloud services is the fact that they can be accessed without the need to invest in extensive infrastructure changes. This is why cloud computing is being increasingly used in cooperation between outsourcing agencies and companies – in data sharing, communication and management of joint projects.  

6. The advent of RPA 

Robotic process automation (RPA) makes it easier for businesses to create and use software robots that mimic human actions. They learn to handle more complex tasks that require decision-making and interaction with unstructured data. They can understand what is written on the screen, write down new information and analyse it – all without taking a break. Automated processes speed up implementation of outsourced tasks, increase operational efficiency and save companies money. They also strictly follow the rules and therefore minimise the risk of human error.  

These trends indicate that IT outsourcing will continue to be a globally sought-after strategic solution in 2024 for companies that want higher efficiency, flexibility and lower operating costs.  

And what about TITANS? We are also applying innovative digital tools in our environment to make sure our services for companies and candidates remain some of the best in Europe. In doing so, we also try to maintain the fundamental Titan approach, independent of technologies: services based on people and relationships, recruiting know-how built on experience, and the determination to do our best for our clients 24/7. Whether you’re looking for the best IT project or top IT experts, let us know, we have them for you!