Global Trends in Outsourcing: What to Expect for the IT Sector in 2023

  • 26 July 2023

Outsourcing has evolved to become an integral component of operations within the IT sector. As technology continues to advance at a rapid pace, outsourcing provides access to skills, talent and expertise that may not reside internally. Heading into 2023, several key trends are emerging that will shape the future landscape of IT outsourcing on a global scale:


Growth of Cloud Computing

The accelerated adoption of cloud computing is having a transformative impact on IT outsourcing. As more organizations migrate infrastructure, platforms, software and other technology workloads to the public cloud, reliance on outsourcing for basic IT operations and data center management is declining. However, new opportunities are arising around cloud architecture design, migration, implementation, application development, optimization and ongoing management. IT outsourcing is shifting towards these specialized cloud-related services, as companies seek outside expertise to handle complex integrations and maximize the value of cloud investments.


Expansion of Intelligent Automation

The growing incorporation of artificial intelligence, machine learning and other intelligent automation technologies is modifying and enhancing many IT outsourcing processes. Automation allows outsourcing partners to perform routine IT tasks faster and more efficiently. This includes automating basic coding, troubleshooting and level-one service desk support. As a result, outsourcing will shift from mundane tasks to focus more on exceptions, advanced analytics and higher-value services. Companies can tap outsourcers to leverage automation for improved quality, responsiveness and costs.


Rising Demand for Cyber security Services

 Cyber security is a pressing priority, as high-profile data breaches and sophisticated cyber attacks make headlines. Many companies are turning to outsourcing in order to rapidly augment cyber defenses and access specialized expertise. IT outsourcing partners can provide managed security services such as 24/7 monitoring, penetration testing, incident response and forensics investigation. This gives access to advanced security technologies and skilled professionals that organizations often lack internally. As threats grow, third-party cyber security will become increasingly critical.


New Delivery Models Emerge

Traditional perceptions of outsourcer location and proximity are fading. The success of remote work and distributed teams during the pandemic has shown physical location to be less relevant. Virtual models enable access to talent and capabilities regardless of geography. Near shoring, on shoring, off shoring and work-from-anywhere will all be viable options based on quality, communication and cultural fit rather than physical distance. Global delivery models will emerge, leveraging integrated expertise across multiple regions.


Demand for Niche Skills Accelerates

The days of generalist outsourcers are coming to an end. IT outsourcing will be characterized by partners who possess deep skills in specialized areas. Cloud migration, intelligent automation, cyber security, block chain, robotics, VR, IoT, 5G and quantum computing represent examples of emerging high-demand niches. Partnering with experts in targeted skill zones allows flexibility and speeds innovation. Access to specialized outsourced talent will foster agility, learning and development of new capabilities.


In summary, these global IT outsourcing trends point towards services becoming more expertise-driven, technology-enabled, intelligent and hyper-specialized. While costs remain important, the focus is shifting towards value, flexibility, innovation and access to skilled talent. Companies that strategically leverage IT outsourcing positions aligned with these trends will gain a sustainable competitive advantage in 2023 and beyond.

Also Read:Digital Transformation: How Technology is Changing Business