The sphere of IT outsourcing is flooded with a tsunami of impressive statistics about where this sector is heading. Whether through a short- or medium-term outlook, the figures don’t lie.
The sector is worth billions and this is only expected to grow at phenomenal rates. So, if you are ready to ride the wave with confidence, there are a few predictions for IT outsourcing that you should know about.
What does IT outsourcing hold in 2024? That’s exactly what we explore below. Keep reading to find out more.
Why do companies outsource IT functions?
First things first, though. Why do companies outsource IT functions in the first place? The practice of using a third-party service provider to carry out critical IT functions is not just about the cost factor.
It’s also about various other underpinning aspects, which include:
- Speed to market
- Access to tools and processes
As more and more companies are realizing, the shift to the online space is only going to become more prevalent.
With online shopping expected to reach 90% of all purchasing by 2040, as just one example, businesses are quickly starting to grasp the fact that they not only need high-quality IT services.
They also need them to be accessible, adaptable, agile, and cost-effective. With this in mind, what does the future of 2024 technology outsourcing hold? We explore the future trends in IT outsourcing below.
Global IT outsourcing trends in 2024
Although every business has different needs, one common denominator is IT. But with IT being such a broad field, we can group organization’s expected IT outsourcing strategies in 2024 in the following key groups:
- Demand for better cybersecurity: As more and more businesses shift their operations to the online space, this opens up a world of opportunities for malicious actors to attempt to hijack clients’ personal and sensitive data, infect organizations with malicious threats, employ ransomware tactics, exploit organizational goodwill, and a whole host of other threats that need to be safeguarded against. As such, IT companies that outsource cyber protection will have their hands full of clients to serve as growing demand for a seamless and safe online experience grows.
- Artificial intelligence (AI): Although AI has been spoken about for the last 50 years, it’s only in recent times that it is emerging as a technology to watch out for. It’s not just about how clever chatbots can help streamline a customer’s online experience. It’s about taking advantage of the speed and efficiency which AI can bring to the table, and even yield insights and reports, which can help organizations with real-time decision making that does not involve time lags.
- It’s all in the cloud: Internal servers can go through a host of challenges and one small mistake can put an entire organization at risk of halting production processes or operations. With the stability and immense space that cloud computing and cloud storage offers, as well as its security, organizations will increasingly seek to migrate their data to safe clouds.
- Blockchain: Businesses that integrate cryptocurrencies in their payment methods require the use of blockchain technology to provide customers with a seamless payment experience. Often, blockchain is faster, more secure, and offers better financial access services to the unbanked. With the rise in the use of cryptocurrencies comes the rise for the need in blockchain technology and its seamless administration. This is where IT outsourcing companies can help.
- Robotic process automation: Businesses that rely on the carrying out of repetitive tasks will be glad to know that these time-consuming tasks can be automated and completed in less time. As the robots learn from growing data sets, they can be made even more effective, introducing significant organizational efficiencies.
- Internet of Things: If your business runs on devices that are connected via the internet and which have sensors that reach certain threshold levels to indicate next steps to your team, you’re dealing with one small aspect of the Internet of Things (IoT). This massive term encompasses many areas of business. However, the key thing is that the IoT is expected to make huge waves in 2024 as businesses robotize and automate many of their processes through connected devices and emerging technologies in outsourcing.
- Eastern Europe as a global IT outsourcing destination: The final outsourcing innovation in 2024 that we’d like to mention is the rise of certain destinations on the IT outsourcing map. Eastern Europe leads the way in this regard. Why? A highly-skilled workforce. Close time zones. An excellent understanding of English. Great labor costs. A well-trained and experienced talent pool. These are just some of the reasons why this part of the world is making waves in IT outsourcing. Building a reputation for exceptional quality work, it’s only a matter of time before more businesses discover the benefits of outsourcing their IT functions to this region.
It’s now time to ask yourself: are you ready to navigate these upcoming changes with confidence? At StorsenDigital, we recommend that you take the first step towards future-proofing your IT outsourcing strategy. Contact us for a personalized consultation and discover how our expertise can align with your specific needs.