Despite the epidemic, technological advancements have aided industry in surviving unprecedented global shifts. The epidemic has accelerated many IT and software outsourcing aspirations for digital transformation.
IT outsourcing is also one of the world’s most rapidly developing sectors. Many top strategic technology trends to keep an eye on in 2025, according to Gartner, include generative AI, cloud-native platforms, and decision intelligence.
Keeping these trends and buzzwords in mind as they are the top outsourcing trends that are expected to make headlines in 2025.
1. RPA and Hyper Automation
Also known as smart process automation, RPA or Robotic Process Automation refers to taking software RPA, or Robotic Process Automation, which refers to taking software bots and adding intelligence to their duties. This process will simplify the workflow by automating repetitive procedures and operations. According to research, the RPA industry would be worth more than $13 billion by 2030.
Companies must move away from simple automation and toward hyper-automation that scales as they expand and grow. Automatic software systems that use hyper-automation may learn from their surroundings, adjust their algorithms, and adapt to changing physical or software updates, resulting in faster corporate operations and decision-making. Automation will include both software and physical devices such as robots and drones, allowing outsourcing companies to manage tasks more effectively and intelligently.
2. Demand for cloud-based technologies and CNPs
Cloud-based solutions enable cooperation on various levels seamlessly, remotely, and securely on a cloud-based platform, which is crucial in outsourcing. As more businesses move their infrastructure to the cloud, outsourcing firms increasingly offer cloud-based services.
The development of cloud technology has aided enterprises all around the world. The expansion of cloud-based platforms is a significant trend to watch out for in 2022, with the cloud computing industry expected to expand to $791.48 billion by 2028, with a CAGR of 17.9%.
Because corporations seek more than just ‘lift and shift’ migrations, demand for omni-cloud systems and cloud-native platforms (CNPs) increases. Companies will be able to create and deploy software on the cloud using CNPs, dramatically lowering costs and increasing productivity. Cloud-native development will be aided by databases, object storage, and container registries as the industry shifts to cloud-based platforms. Surprisingly, this transfer of data centers to the cloud may enable small and medium-sized businesses to benefit from the change.
3. Growing importance of Artificial Intelligence
Artificial Intelligence (AI) will be a significant issue in IT outsourcing trends in 2022. With so much emphasis on customer service and experience, AI can drastically simplify company operations by processing massive amounts of data and analyzing it to improve user experiences. They can also reduce the average time it takes for client complaints and inquiries to be handled, allowing customer support representatives to focus on more complicated and complex problems and tailored services.
Companies are looking to outsource AI-driven projects or want outsourcing services providers to integrate strands of AI into their existing operations as demand for AI grows. Because not all firms have the resources to design and apply Machine Learning and Artificial Intelligence into their software, they will outsource these activities to suppliers who are experts in the field.
4. Developing progressive web apps (PWAs)
PWAs are web-based applications that provide users an experience comparable to that of using an app while utilizing a web browser. Users are not required to install any software on their computers. PWAs integrate the finest characteristics of web and native apps, resulting in a more intuitive and responsive UI/UX design.
With customers spending considerable time on mobile phones, developing yet another app to clog their systems cannot want to download many apps. PWAs provide a competitive edge to businesses because they allow them to reach people without downloading a large number of apps.
What role does this play in 2022’s IT outsourcing trends? Companies will increasingly seek out software development services firms to help them develop these technologies. Outsourcing service providers who can teach developers to work on PWAs will reap significant profits.
5. Expansion of remote working
Remote working has long been associated with outsourcing service providers, but COVID-19 has spread to a wide range of businesses, specializations, and jobs. It’s become the new normal.
With cost reduction, top on the priority list of those outsourcing their software development services to BPOs, expanding remote working capabilities and systems will be a trend to watch out for in 2025.
The emergence of hybrid working patterns means that firms’ personnel are dispersed across many geographic areas, resulting in a business model transformation. Companies are trying to outsource a greater range of projects and employ remote working partnerships to acquire talent and dramatically lower expenses as remote working becomes the new normal. Because of a behavioral and mental shift in the way we operate, firms that previously rejected recruiting teams from other countries now have their employees working remotely. This implies they’ll be more willing to outsource services to other parties for a lesser price. This offers a plethora of new development and expansion prospects for offshore businesses.
6. Security and cybersecurity specialists
With technology growing and diversifying exponentially and with employees remotely accessing networks, enterprises are exposed to cyber-attacks and new forms of threats. The digitization of business management has led to an urgent need to guard company networks, data, and infrastructure.
Outsourcing service providers need to work out a multi-level security approach to rule out risks and safeguard the company’s data. With businesses outsourcing their important tasks to outsourcing partners, it is critical for outsourcing partners to have extensive security services to keep their data and systems safe from external threats. Outsourcing partners need security experts who can fortify their infrastructure, data, and software, both on and off the cloud.
Conclusions
Many companies opted for outsourcing to meet business demands with lockdowns and restrictions. According to research, IT departments in large corporations increased their outsourcing budget from 12.7% in 2019 to 13.6% in 2020.
It is essential to understand these new outsourcing trends and how they can catapult a company’s business success to the next level. Companies need to consider these critical developments and changes when planning and implementing their strategies for businesses and software development for the next few years. The pandemic has reshaped customer and market behavior, with IT playing a critical role in steering these changes forward.
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