Top IT Outsourcing Trends Set to Dominate in 2022

When it comes to leveraging technological advancements cost-effectively, offshore software development remains a preferred choice of entrepreneurs. This is a major reason why offshore development or IT outsourcing has become so popular among organizations globally. It enables companies to focus on core competencies or productive activities while leaving other processes to a hired development partner. 

IT outsourcing is still evolving in line with challenges posed by the shrinking economy in this pandemic age. This situation is going to continue in the post-pandemic phase also, and we can expect that offshore software development will keep on offering novel practices to businesses across the world. In this post, we will dig deep into the upcoming IT outsourcing trends that will rule the corporate world in the year 2022 and beyond. 

Eight IT Outsourcing Trends to Watch in 2022 (and beyond)

As per the Statista prediction, the market volume of IT outsourcing revenue will reach USD 551,956 million by the year 2026. We will witness some unique trends of outsourcing or offshore development from the year 2022 onward. Here are the top eight such trends to watch. 

1. Prevalence of Cloud Computing

A Markets and Markets survey has revealed that the cloud computing market is expected to cross $246 billion by 2023. On one hand, cloud computing facilitates businesses to save and manage their data seamlessly, and on the other hand, it remains instrumental in bringing automation through data sharing. Cloud computing is also useful in reducing costs and improving the overall efficiency of employees. 

W e can certainly expect that the market for cloud computing services will grow in the next few years as companies will migrate their data to the cloud with the help of reliable service providers. 

2. Focus on ML Automation

Another important trend of IT outsourcing will be Machine Learning (ML) automation. Here, ML-based algorithms can help offshore software development companies to improve their services and optimize various processes. ML also makes it possible for IT service providers to identify and resolve issues more quickly. As a result, IT outsourcing companies can perform better in the coming years. 

As a type of AI, machine learning will keep on evolving and play a vital role in the IT industry for outsourcing and developing advanced solutions.  

3. Increased Need for Cyber Security

As mentioned above, more businesses across the world will move their operations, software, and necessary applications to the cloud. It will increase the need for cybersecurity experts because cloud-based platforms are vulnerable to attacks. Outsourcing service providers that offer cybersecurity services will remain in high demand in the year 2022 and beyond. 

We can also predict that the role of cybersecurity experts will be expanded gradually. The increasing popularity of SOC (Security Operations Center) will further boost the requirement of cybersecurity professionals. We will see the implementation of security at multiple levels including cloud, application, endpoint, and network. 

4. Rise of Blockchain Services

Blockchain technology has evolved rapidly in recent years. Its scope also goes beyond the BFSI sector and we will witness that it will have an impact on other sectors in the coming years. Talking about software development outsourcing, we can say that Blockchain would enable developers to come up with highly secure applications. This technology makes it possible to build apps that can store corporate data securely across various decentralized computers. 

Companies that want to outsource IT functions or get cloud-based storage can leverage the benefits of blockchain-based security in their applications. The decentralized nature of the blockchain can make it easier for companies to derive value from the collected data in the form of BI (Business Intelligence).  

5. Dominance of AI Technology

Be it online or offline applications, AI remains a preferred technology for developers. These days, chatbots, personal assistants, and other applications extensively use this technology, and we will see the rise in popularity of AI over the period as companies will start incorporating AI into different products and services. Offshore software development companies will offer AI-based services in the coming time along with their traditional IT outsourcing services. 

Here it is fair to mention that AI-based solutions will enhance the productivity and efficiency of the existing workforce rather than stealing human jobs. 

6. Increased Popularity of Remote Work

Remote working or WFH (Work from Home) has become a new norm in this pandemic age, and this trend is going to stay. There is no exaggeration in mentioning that the practice of remote work will gain more popularity worldwide as more companies will start leveraging its benefits. Increased flexibility, better work-life balance, and higher efficiency are some of the noteworthy benefits of remote working. 

In the year 2022, more companies will tend to provide this facility to their employees to leverage these benefits. This trend will compel outsourcing service providers to increase their staff to meet the increasing demand. 

7. Use of Robotics

Robotics brings automation in processes. Manufacturing and other core industry sectors get ready to leverage the benefits of robotics like cost reduction and improved efficiency. Robotics offers a cost-effective way to reduce human effort and employees can focus more on value-added tasks including strategy development and decision making. 

In the coming years, robotics will strengthen footprints in the outsourcing sector. As a result, we will see a rise in the services like robotic process automation (RPA) and software development. 

8. Integration of IoT in Solutions

As per the Statista estimate- the number of connected devices will cross the 25 billion mark by 2030. We witness a significant increase in the number of connected cars, appliances, and even clothes. It is predicted that IoT will emerge as one of the biggest technology trends of the next decade. Businesses that tend to outsource their IT projects will certainly consider this fact. 

Therefore, offshore software development companies need to remain ready to address the demand for IoT-driven solutions. They need to integrate IoT in every process ranging from system integration to app development. 

Concluding Lines

IT outsourcing will contribute to taking modern enterprises to a new level in years to come. We can expect that these eight trends will dominate in the year 2022 and beyond. All you need to hire a reputed offshore software development partner to make the most of these trends through top-notch IT outsourcing solutions.