Information Technology outsourcing trends are on the rise! According to Statista, by 2027 IT Outsourcing revenue will reach 145.7 Billion dollars! That’s a lot of money, right? Now that I have got your attention, let’s clear one thing. What is Outsourcing? \n\n\nOutsourcing is – a business practice in which a company hires a third party to perform tasks, handle operations or provide services for the company\n\n\nEnterprises like IBM, NEC, Microsoft, HP, etc are all relying on outsourcing and are considered some of the key players according to IT outsourcing statistics. Procoders has collected detailed information on every hot outsourcing trend for 2023 for you including all the key technologies!\n\n\n\n\n\nWhy do Companies Outsource?\n\n\nWell, the answer is quite simple, Outsourcing is cost-effective! With outsourcing companies, start-ups can hire technical experts even if they lack the technical knowledge themselves and the icing on the cake is that it saves you a lot of time because usually, these outsourcing providers have developers waiting for a project to hop on! \n\n\nCovid Impact!\n\n\nDuring the pandemic, due to social distancing remote work was preferred and people generally became more open to the idea of outsourcing, because it did not matter if an employee was located 10 miles from where you are or 1,000 miles as long as the productivity is increasing! Still, according to the statistics, there was a small drop in 2020 in the revenue generated, which is most likely because everyone was still figuring out how their business process would function! \n\n\nTop 5 IT Outsourcing Trends for 2022\/23\n\n\nWhile outsourcing services are on the rise, there are still a couple of things to consider and find out why and how it might be good for your organization.\n\n\nFor example, the expertise of the outsourced teams can quickly and positively impact your product or with the help of outsourcing, you can also implement emerging technologies first and reap the benefits before anybody else does.\n\n\nHere at ProCoders, we have the privilege of working with many wonderful people with different requirements and have first-hand experience in working with these trends! Hence, we are going to look into the top IT outsourcing trends 2022 and the future! \n\n\n\n\n\n1. Cloud Services\n\n\nBusinesses use cloud computing to outsource the management and storage of their data, applications, and other IT tasks. In order to work efficiently with teams around the world and exchange and modify information in real-time. This results in cost reduction and improved efficiency.\n\n\nThe main cloud-based services used are: \n\n\n\nSoftware as a Service (SaaS): Instead of installing software, a cloud provider hosts them and makes them accessible to end users over the internet.\n\n\nPlatform as a Service (PaaS): Businesses use them to create, administer, and operate their own apps without having to develop and maintain the platform or infrastructure.\n\n\nInfrastructure as a Service (IaaS): Another one of the current IT infrastructure outsourcing trends, It is a pay-as-you-go service where a third party offers you cloud-based, internet-based infrastructure services as you require them, including storage and virtualization but the operating system, any data, programmes, etc are your responsibility as the user.\n\n\n\n2. CyberSecurity\n\n\nAs Cyber attacks increase in frequency, high-level data security will be one of the most important topics in the coming years and there will be a considerable need for outsourcing companies that can provide cybersecurity services. \n\n\n\n\n\nDespite the fact that many cloud service providers do have security solutions, these are frequently insufficient for establishing enterprise-grade security. Additional third-party solutions are usually required to defend against data breaches and targeted attacks.\n\n\n3. Artificial Intelligence (AI)\n\n\nOne of the top global IT outsourcing trends, AI refers to machines or systems that can accomplish tasks and can improve themselves depending on the data they gather by mimicking human intelligence. AI can appear in a variety of ways. Some examples are:\n\n\n\nOn the basis of users’ viewing patterns, recommendation engines can automatically suggest TV shows to them.\n\n\nChatbots use AI to understand consumer issues more quickly and offer more effective solutions.\n\n\n\nAccording to Statista, in 2019 a percentage of every industry has been using AI technology in their businesses in the Asia Pacific region with the numbers set to increase with their 2022 predictions.\n\n\n\n\n\nAs AI technology becomes popular, the outsourcing market has taken notice and there is a growth in the number of companies providing such services.\n\n\n4. Machine Learning Automation\n\n\nThe machine learning market is expected to grow from USD 1.03 Billion in 2016 to USD 8.81 Billion by 2022 making it one of the top it outsourcing industry trends. Machine Learning Automation is a form of AI, it focuses on using data and algorithms to mimic how people learn, thereby increasing its accuracy.\n\n\nRecently machine learning is becoming one of the hottest IT services outsourcing trends because the demand for talent in this field is increasing and rather than hiring these experts in-house for huge costs outsourcing saves everyone a chunk of their budget while getting the best service by competent software development companies. \n\n\n5. WEB 3.0: The Metaverse, Blockchain Services\n\n\nDevelopers can create applications using blockchain technology that safely store data across multiple decentralized computers. While the most recent Internet technology, known as Web 3.0, uses blockchain, artificial intelligence, and machine learning to enable real-world human contact. Whereas, in the metaverse, people move through a virtual environment that closely resembles the actual world utilizing technology like virtual reality (VR).\n\n\n\n\n\nBlockchain Services will be the biggest IT outsourcing future trends because the idea of a decentralized web is appreciated by everyone and this digital transformation will become of the key assets in the business world where majority of the businesses will switch to blockchains and the demand for competent software vendors. We make sure that we are up-to-date with this and that our clients do not miss out on anything!\n\n\nHow the Cooperation Models are Evolving?\n\n\nIf you thought right now is the time to weigh the benefits and risks of outsourcing software developers then you should give the article inserted a read, it goes into the advantages and disadvantages in detail while here we simply stick to the current trends in IT outsourcing. So let’s take a loot at how these cooperation models are changing\n\n\nEngagement Models\n\n\nThere are a couple of engagement models out there which are currently in use\n\n\n\nFixed Price Model: a business partnership with a pre-set price. A fixed fee will be charged despite the time and money spent on the project. Even though the fixed priced model has been around since forever but here at ProCoders, we explain to our clients that there is no flexibility with this model and you might end up overspending still\n\n\nTime and Materials Model: Businesses just need to pay for the materials and time used during the development process. This is one of the oldest and most established techniques for developing software. ProCoders likes this model and it can really help out when someone has a short-term requirement. It is indeed one of the top it outsourcing trends\n\n\n\n\nDedicated Team Model: The client gives their outsourcing partner a set of duties. Numerous skilled developers are frequently available at outsourcing companies and ready to join a project. The vendor selects a development team based on the specifications provided by the client. Typically, the client is billed on an hourly basis. That is why we believe that this is the best model out there because you have complete control over every single thing that goes on! \n\n\n\n\nPayments\n\n\nThere used to be a time when bank transfers were the only option people had when making payments to their outsourcing partners, we have come a long way since then. \n\n\nNow there is a list of options to chose from, some projects are charged by the hour, some come with a fixed fee, it is all down to the client and their outsourcing partners. \n\n\nIn terms of making payments, they can be made on the blockchain using cryptocurrency itself, apart from that we have got lightning fast transfers with platforms like PayPal, Payoneer, Wise, etc.\n\n\nNDAs\n\n\nOne of the most important thing is an NDA (non-disclosure agreement) when outsourcing because your million dollar idea and the way you work will definitely be shared with your outsourcing partner, if you have an NDA signed by both the parties this pretty much means that your ideas are safe. Nowadays, NDAs are one of the initial requirements when outsourcing, this wasn’t the case back in the days. We love NDAs, really, they make our clients feel more secure and we feel more comfortable in asking the details in terms of their requirements so we can serve them better!\n\n\n\n\n\nOutsourcing Teams Contribution Benefits \n\n\nSince there is such a huge demand for developers, locals are quickly hired, so if you live in the US or the UK, it may take you several months to find an expert. In the previous few years, things have only gotten worse. Therefore, an increasing number of businesses are turning to the foreign market in order to find high-quality staff.\n\n\nFurthermore, suppose you have an idea but lack the technical knowledge to implement it; in this case, your outsourced team would assist you because they will have the necessary expertise in bringing your idea to life! \n\n\nIndustrial Expertise’ Level\n\n\nDue to the abundance of outsourcing firms and the substantial supply on the market, businesses start to compete with one another and buyers are being spoiled with customer-centric outsourcing companies with extensive experience in the industry the client is a part of, consequently, technical decisions that are based on this frequently prove to be successful.\n\n\nWhy Business Should Adopt IT Outsourcing Industry Trends to Leave the Competitors Behind?\n\n\nIT departments outsourcing trends are on the rise, organizations are outsourcing all around the world, from Eastern Europe to India and all the way to South America! It saves them time, reduces costs, provides professionals with experience in their field. On top of that you do not even need to have the technical knowledge required to run a team. So, the question here is, why shouldn’t you Outsource?\n\n\nWhat Can the Business Lose if it doesn’t Use Outsourcing to Implement Emerging Technologies?\n\n\nYou know the answer to this, they will be left behind by their competitors, because if you are not ready to evolve, most probably you will be working with technologies that are outdated and that is going to end up costing you your business! \n\n\n\n\n\nBenefits You’ ll Bring to Business with Outsourcing Engagement Model\n\n\nSome of the benefits have been mentioned above but lets try to cover the main advantages of Outsourcing:\n\n\n\nCost reduction\n\n\nSaves time \n\n\nHelps you get expert opinion\n\n\nOpportunity to work with people experienced in your industry \n\n\nYou do not have to provide a workplace \n\n\nTechnical Knowledge not required\n\n\n\nStart to Implement the Best Outsourcing Trends for Your Company with ProCoders\n\n\nA lot of people wonder, how does Outsourcing start, what are the steps needed, how does it work? Well, I am going to walk you through the steps of how it works with us here at ProCoders and if you are interested in the increasing trends and our help with mobile development, please check out outsource mobile app development! \n\n\nNDA\n\n\nThere is always a chance that confidential information may end up in the hands of someone we wouldn’t want to know about our business plans, ideas, etc. So, the first thing we do is sign an NDA (Non-disclosure agreement) to ensure that everyone participating is legally obligated to never share any sensitive information with anyone unless they are working on the project!\n\n\nWe take this extremely seriously because many of our clients approach us with what they consider to be their “million dollar idea,” and we want to make sure that ProCoders is a name they can rely on.\n\n\nDiscovery Phase \n\n\nWe go back to the drawing board and develop a strategy after we have a better understanding of your ideas and requirements. We estimate the required time and develop a timeline for your project’s development. Typically, we have experts in our pool ready to begin working on a project.\n\n\n\nTeam Selection\n\n\nDuring this step, we have to determine the number of developers you would need for the project and who will be working on your project based on the engagement model. If the developers are in our pool and prepared to work, it takes less than 5 days to start the process, which is something we make sure of here at ProCoders. It is our responsibility to hire top specialists with all the necessary tech skills, if we don’t already have such experts on hand.\n\n\nAll of our developers go through a thorough hiring process in which we focus heavily on both their technical and soft skills as well as their English proficiency.\n\n\nInterview with the Client\n\n\nNo matter what the engagement model of outsourcing would be, we always prefer that our clients are at ease and kept in the loop, that is why after selecting the team, we give the client a chance to interview all the personnel. So they can decide if these are the people they want working on their product! \n\n\n\nConclusion\n\n\nHiring In-house is so last year! Outsourcing is the future and it is here to stay. There might be some people worried about the disadvantages but a thorough research shows that the advantages of Outsourcing outweigh the disadvantages. You have to keep up with the top IT outsourcing trends in order to stay relevant because the digital world is transforming quickly and Outsourcing itself is the biggest trend for the future.