How Outsourcing Be the Future of IT Companies

Are you planning to outsource the non-core tasks of your business to a third-party? Considering the current outsourcing demand, it is safe to say that outsourcing is going to be a major trend in IT companies. 

Rather than hiring in-house professionals, companies have started outsourcing IT talents. Initially, outsourcing was limited to data entry and payroll processing service providers. However, people have started to outsource significant business tasks. 

Outsourcing is a process of getting the non-core activities of your business performed by someone else. 

It has become an integral strategy for small-scale and large organizations. Healthcare, manufacturing and IT are some of the popular industries that embrace outsourcing concepts.

As the demand of software or web development is growing, more and more companies are outsourcing their work to independent contractors. These contractors cater to the software development and other IT-based requirements of the companies.

 In this post, we will walk you through the future trends of outsourcing in the IT sector. Let’s get started.

  1. Less Focus on Cost Reduction
  2. Specialized Outsourcing Partners
  3. Alternative Outsourcing Options
  4. New Contract Models
  5. A Shift to the Core Business Operations
  6. Automation of Manual Tasks
  7. Cloud Sourcing

Less Focus on Cost Reduction

Do you know what makes outsourcing the most popular concept ? Well, IT companies prefer outsourcing to reduce the overall cost of non-core business operations. 

But is price the only factor that should tempt an IT company into hiring an independent contractor for their business? 

Sure, outsourcing is especially famous for its cost reduction benefits. But there is more to this concept than price. 

The task carried out by a professional software developer will be different from the same job done by an in-house specialist. 

Your company is paying a certain amount to a software specialist to execute a specific job. Now that he is an expert in this field and is paid for the job, he will provide your company with the best output. 

In addition, the client (to which the project is outsourced) will become partners with IT Company. This business relationship can benefit your organization in the long run. 

Specialized Outsourcing Partners

Not every firm has all the technical skills that a company needs to run smoothly and efficiently. Sure, the in-house specialists can help run the company to a certain extent. 

But, their skills may prove insufficient to cater to all the technical needs of the company. In such cases, the only option you have is to outsource your projects to different vendors. 

Let’s say a customer asks your company to build a software for their retail store. You have in-house experts who are specialized in web development services. Your team also has a few members who possess little knowledge of software development. 

Should you rely on your inexperienced team to get the job done quickly? Or, should you invest extra money and outsource the work to a professional software development company

Of course, your primary objective is customer satisfaction. Your company can grow only if you manage to satisfy your customers. That being said, the wise decision would be to hire a software developer to get the job done on time and at reasonable rates. 

Alternative Outsourcing Options

According to the reports, India and China are the leading countries to accept the IT outsourcing concept. The countries are making billions every year with their outsourcing industries. 

But as the demand for IT professionals is increasing by leaps and bounds, more countries are expected to join the league. 

Eastern and Central European countries are expected to embrace the outsourcing concept and give a tough competition to other countries.

New Contract Models

Companies and IT service providers are planning to embrace the latest contract models to form a better and healthier relationship. 

The new contract models are specially designed to improve the output of the work. To share the obligations (that each party has to follow) and risks, companies and IT providers will carry out the business operations through a legitimate contract.

These contracts will reduce the notice periods and allow IT companies to hire the best vendors out on the market.

A Shift to the Core Business Operations

Earlier, outsourcing was limited to non-core business operations. Companies found it convenient to outsource the less important business tasks to a specialist. This made it easier for them to devote their time to core and productive business activities.

However, this trend is going to change in 2020. If the current sources are to be believed, then the outsourcing market will witness major growth in 2020. This sector will be worth $220 billion by the end of 2020.

As the outsourcing industry is growing at a rapid rate, there will be a shift in outsourcing assignments from non-core business activities to important tasks. 

Companies will start hiring business consulting services and other core service providers for higher productivity. 

Automation of Manual Tasks

A special IT trend that is expected to become a major component of the IT industry in the future is automation. Not only IT companies, but all major industrial units are embracing bots and virtual agents. These bots are supposed to carry out the human-based tasks efficiently. 

We all have seen how Artificial Intelligence has gained popularity across the globe in no time. Companies are ready to invest in AI to reap the best rewards. 

Now that the demand for bots and AI-based virtual assistants is increasing, the IT professionals need to adapt to this latest technology to stay up-to-date with the market trends. 

This will increase the growth of the outsourcing industry as more companies will want to hire advanced and sophisticated service providers.

Cloud Sourcing

As more and more companies are moving to cloud-based platforms, the demand for cloud computing service providers is growing significantly. To cater to data storage requirements, companies are likely to rely on cloud sources. 

Companies that are using cloud services to store data will hire IT security service providers to reduce security threats.


Going with these trends, the outsourcing industry will witness major growth in the coming future. And keeping the stride on the IT outsourcing service providers are going to bring a major revolution in how the businesses operate and deliver.

Guest article written by: Tarun Nagar is the Founder & CEO of Dev Technosys, a global ranking Web and Mobile App Development Company in Dubai. With 10+ years of experience of enabling then Startups which are now global leaders with creative solutions, he is differentiated by out-of-the-box IT solutions throughout the domain. He is known for his visionary qualities and adaptability for technology and trends, passionate as he is in every aspect dedicated to making IT simple, accessible and approachable for business enterprises.

2 thoughts on “How Outsourcing Be the Future of IT Companies”

  1. it is very useful and knowledge base article i really take advantage in this thanks for giving this information.

  2. Wow! What a detailed post on the trends in the IT outsourcing industry. I agree with the shift in focus from cost to quality, especially when it is IT. New contract models now focus on features and maintenance of the product.


Leave a Comment