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Ildar Kulmuhametov
CEO, Co-Founder

USA, Austin

Yevhen Piotrovskyi
CTO, Co-Founder
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25 November 2020
7 min to read

For some IT outsourcing seems to be too good to be true. Affordable pricing, a wide talent pool with a variety of skills, endless opportunities for business growth... All of these make software development outsourcing a constantly expanding industry with billions in profits. If your competitors make money on outsourcing their IT tasks, why can't you? The question was rather rhetorical. You can and you should. But before jumping into the outsourcing ocean, make sure you keep your finger on the pulse of the latest IT outsourcing trends.

IT outsourcing: relevant stats and figures

While words do have power, numbers have more of it. We can talk about the growing popularity behind software development outsourcing all we want, but without any proof, these words aren’t quite convincing. If you open Statista, you will see an impressive contrast in information technology market value within the period of time from 2000 to 2019. According to the Statista report, the market size of IT outsourcing grew to an overwhelming sum of 66.52 billion dollars in 2019. It is predicted that the figure will be rising rapidly in the upcoming years. Another statistical research conducted by Gartner forecasts that IT spending will be about 3.8 trillion dollars in 2021, which means an increase of 4% compared to 2020.

The figures and statistics presented here tell us one thing. The potential of the information technology industry has no limits. Quite a few businesses have already grasped the necessity of digital transformation and started following the latest trends in order to stay afloat. With this article, we want you to hop on the outsourcing bandwagon and be aware of all IT outsourcing trends that need to be kept an eye on.

Throughout all these years there have always been non-believers who would predict the soon decay of the software development sector. However, the trends in IT outsourcing keep springing up like mushrooms each year proving that the future of outsourcing is bright and promising. So, what IT outsourcing trends are worth your attention at the moment? Let's see:

Artificial Intelligence and Chatbots

When it comes to Artificial Intelligence, it is hard to calculate the speed this technology trend is evolving. According to data from the GSA report, 80 percent of respondents are sure that AI will be one of the most significant software development trends for the next ten years. Thus, the need for qualified AI specialists will be growing tremendously. AI solutions will enhance different industries. One of the most important of them is e-commerce. At the moment there are AI-powered chatbots that substitute human interactions, which is quite necessary during the uncertain times of COVID-19. The bots will be able to take routine tasks and power up all industries.

The Need for Narrowly-Focused IT Skills

A lot of companies claim that building an in-house team is a tough nut to crack because having all the specialists under one roof is simply impossible and, let's be honest, very expensive. The tech industry is evolving quickly and it is difficult for a company to follow all the trends because there are only a few in-house IT specialists who usually perform as a one-trick pony. Thus, the increased need for narrowly-focused specialists is clear. A lot of software development outsourcing companies have a big team of experts with hands-on experience in a particular technology field. And so by outsourcing your IT tasks you get exactly what you pay for.

An Increased Interest in Cybersecurity

The problems of data security are on the agenda at the moment since the amount of cyber attacks is increasing rapidly. Whether these attacks wear political motives or cybercriminals steal data for money extortion, the demand for fully encrypted data is high. Thus, more and more businesses are looking for ways of preventing cybersecurity incidents. To make that happen. Innovative IT companies create cutting-edge data breach detection systems and offer various cybersecurity services. In case you worry that your company’s data is under a threat, consider outsourcing data protection tasks to professionals.

The Need for Cloud Computing

As the Gartner researchers forecast, the worldwide public cloud service revenue will be $289.1 billion worth in 2021. It is already seen that more and more companies take advantage of cloud computing to win their place at the top and overrun competitors. Needless to say that the demand for high-quality outsourcing cloud services has never been higher. In the near future, the need for developing and maintaining cloud platforms for storing data isn't going anywhere. Companies will rather find a reliable partner to take care of cloud security while they concentrate on core business activities.

Significant Digitalization of FinTech and HealthCare

It makes sense that trends in outsourcing rely on trends in technologies that particular industries require. Been working as an outsourcing software development company for a while, we have noticed the shortage of high-quality software solutions within such industries as FinTech and HealthCare. More and more companies that have something to do with these industries reach out to us with requests to build a suitable solution that will automate some of their processes. The complete digital transformation of these and other industries will take some time so it is safe to say that this trend in outsourcing has just hit the road.

Mobile-First Philosophy in Software Development Outsourcing

Statista says that the number of people who prefer mobile devices has grown from 2.5 billion people in 2016 to 3.5 billion people in 2020 and it keeps growing continuously. It is predicted that online desktop traffic will soon become a minority since the main online traffic already comes from the mobile market. More and more companies give their preference to the mobile-first approach when developing software solutions. If you want to compete in your business niche, a responsive mobile app is a must. Thanks to the growth of this outsourcing trend, you can have quite a few options when it comes to choosing outsourcing partners.

Robotic Process Automation

It is difficult to underestimate the advantages of robotic process automation technology. From the reduction of all operations costs to minimizing manual mistakes and improving the coordination of work, the RPA cannot be out of outsourcing trends. The automation of business processes is the number one priority for most companies these days. Those routine operations that used to be performed by humans can now be digitally transformed. Due to this a lot of companies that offer outsourcing services invest their time and effort in learning and implementing business automation technology.

The Popularity of Outsourcing Destinations in Eastern Europe

For a long time, countries like China and India have been almost monopolists in terms of global outsourcing. However, the recent shift of focus from price to quality results has made those who are looking for more favorable outsourcing destinations pay attention to countries of Eastern Europe such as Ukraine, Poland, and Belarus. The dynamics of the IT industry in these countries are impressive and they are becoming more interesting as outsourcing tech hubs. Speaking of Ukraine, its IT services market size has increased almost 6 times during the period from 2011 to 2020. There are nearly 200,000 IT specialists that are well-versed in all the demanded technologies.

In Conclusion

Some may say that the outsourcing industry gradually goes into oblivion. However, the trends we have just discussed as well as the other ones prove the opposite. The demand for creating top-notch digital solutions is growing rapidly. Client-companies keep constantly looking for credible software development services vendors that offer a wide array of tech solutions, skills, and knowledge. Those who choose to outsource software development have more chances to stay on board as the innovations and tech trends influence the quality of the provided products and services and result in higher satisfaction of the industry demands.The Yojji team keeps up with the latest IT outsourcing trends and innovations to provide you with up-to-date software solutions and quality services. You can reach out to us to learn more about trends in IT outsourcing.

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NL, Amsterdam

Ildar Kulmuhametov
CEO, Co-Founder

USA, Austin

Yevhen Piotrovskyi
CTO, Co-Founder