Top IT Outsourcing Trends Worth Following in 2024 & Beyond

Outsourcing IT has become a key part of how businesses operate today. It’s all about handing over certain IT tasks (or even entire processes) to outside offshore or nearshore experts. This lets companies focus on what they do best while still benefiting from top-notch tech, expert knowledge, and more affordable solutions.

With the digital world changing so fast, keeping up with the latest IT outsourcing trends is super important if you want your business to stay ahead. These trends don’t just affect how outsourcing works — they’re also shaping the future of the entire outsourcing industry. By keeping yourself informed and flexible, you’ll set your business up for long-term success in any outsourcing strategy.

Outsourcing Trends Today: Industry Statistics

Outsourcing is booming, and it's easy to see why. Let’s explore a few key stats that show just how much businesses are relying on outsourcing to stay competitive and efficient: 

• The global outsourcing market is thriving, projected to reach over $700 billion by 2028. This reflects a steady annual growth rate of around 6.8% from 2021 to 2028​. 
• Around 92% of G2000 companies now outsource some or all of their IT services. This indicates that IT outsourcing has become essential for large-scale digital transformations, with companies relying on outsourcing to improve efficiency and focus on core competencies (IGS)​. 
• 83% of companies reported reducing their operational costs through IT outsourcing. This remains one of the primary reasons businesses choose to outsource, particularly in regions, where labor costs are significantly lower​ (Deloitte).
• Executives identified cybersecurity as the number one external challenge they face in achieving their strategic objectives. Today, 81% of executives turn to third-party vendors to provide, in full or in part, their cybersecurity capabilities (Deloitte).
• Offshore outsourcing remains the dominant type of outsourcing driven by cost advantages and access to global talent pools.

• Cloud adoption among enterprise organizations is over 94%, indicating a significant shift towards cloud solutions. This aligns with the trend of increased cloud outsourcing (CloudZero)
• 37% of companies predict an increase in their IT outsourcing spending over the next three years.

10 Key IT Outsourcing Trends to Follow in 2024

From the rise of AI and cybersecurity to the growing focus on sustainability, these trends are shaping how businesses approach outsourcing. Let’s explore the top 10 key IT outsourcing trends you need to know:

1. Increasing Focus on Cybersecurity

As cyber threats grow in sophistication and frequency, cybersecurity has become a primary concern for businesses worldwide. The focus on secure outsourcing partnerships is expected to intensify. Companies are not only outsourcing cybersecurity services but also looking for providers that prioritize robust data protection, compliance, and privacy protocols.

Outsourcing vendors that offer end-to-end security solutions, including real-time monitoring, threat detection, and incident response, are becoming key players. This allows companies to protect their operations without having to invest heavily in in-house cybersecurity teams. 

2. Growth in AI and Automation Outsourcing

AI and automation have transformed many industries, and IT outsourcing is no exception. The demand for AI-driven solutions is skyrocketing as businesses seek to automate routine tasks, improve customer experience, and enhance decision-making processes. 

From chatbots and robotic process automation (RPA) to machine learning algorithms, AI outsourcing keeps businesses at the forefront of innovation. Providers specializing in AI consulting, development, and implementation are in high demand, helping companies harness the full potential of AI.

3. Cloud Adoption and Management Services

Cloud computing continues to lead IT outsourcing as more businesses rely on cloud infrastructure for data storage and operations. The demand for cloud management services continues to soar, with companies outsourcing tasks like cloud migration and optimization to avoid handling these complexities in-house.

This is particularly useful for businesses looking to scale quickly or adopt hybrid cloud models. By leveraging software development outsourcing trends and software offshore solutions, companies access cloud expertise globally, ensuring smooth operations without the added costs and challenges of managing it all internally.

4. Nearshoring Gains Momentum

Nearshoring, the practice of outsourcing IT services to nearby countries, is gaining popularity due to its cost-efficiency and proximity benefits. This outsourcing model allows businesses to balance quality and affordability while benefiting from geographic and cultural proximity.

The nearshoring trend is particularly noticeable in Europe, where businesses are outsourcing to Eastern European software developing companies in Poland, Ukraine, and Romania. With their strong IT expertise and competitive labor costs, these countries are emerging as top choices for outsourcing destinations. 

5. Sustainability and Green IT Practices

Sustainability is now a major factor in IT outsourcing, with companies seeking vendors that adopt eco-friendly practices like reducing carbon footprints and using energy-efficient data centers. In 2024, businesses will prioritize partners that align with their environmental goals, as green IT outsourcing not only lowers environmental impact, but also boosts their brand reputation in the eyes of increasingly eco-conscious consumers.

Deloitte's 2024 CxO Sustainability Report shows that sustainability is becoming a top priority, with 85% of organizations boosting their sustainability investments this past year, up from 75% in 2023. Additionally, 70% of executives expect climate change to heavily influence their strategies in the next three years, and nearly half (45%) are already reshaping their business models to make sustainability a central focus.

6. Hybrid Work Models and Remote Collaboration

The pandemic fast-tracked the shift to hybrid work models, and this trend shows no signs of slowing down. As businesses adopt permanent remote or hybrid work structures, IT outsourcing must adapt to these new realities. The demand for remote collaboration tools, virtual desktops, and secure remote access solutions is fueling this shift.

Outsourcing providers that offer flexible, remote-friendly IT services are in high demand. This includes everything from cloud-based collaboration platforms to remote network monitoring and support services that ensure seamless operations in hybrid work environments.

7. Focus on Data Analytics Outsourcing

Data is the driving force of business decision-making today. With the explosion of data generation, companies are increasingly turning to outsourcing providers for analytics solutions. These providers offer expertise in big data, machine learning, and business intelligence tools, helping businesses turn vast amounts of information into actionable insights.

According to Forrester's analysis, insights-driven business process outsourcing is increasingly in demand, particularly for companies that want to leverage their data assets to drive innovation and competitive advantage. The report evaluated major players in the data analytics outsourcing space, highlighting that providers such as Accenture, Cognizant, and IBM are leading the market by offering a blend of process, industry, and data management expertise​

8. Custom Software Development Outsourcing

As companies seek to stand out with unique digital solutions, the demand for custom software development is increasing. By partnering with software development outsourcing companies, businesses can create tailored applications that perfectly fit their needs without the overhead of managing an in-house development team.

Providers skilled in agile development, UX design, and cutting-edge technologies like blockchain and IoT are in high demand. This outsourcing model lets companies access top talent and innovative solutions, helping them stay competitive. With the need for specialized software only growing, this trend is expected to continue gaining momentum. 

9. Low-Code Software Development Outsourcing

Low-code development platforms are becoming a game-changer. These platforms allow businesses to create applications with minimal hand-coding, speeding up the development process and making it easier for non-developers to contribute. 

As companies race to get digital products to market faster, outsourcing low-code software development is on the rise. Gartner predicts that by 2025, 70% of enterprise applications will be developed using low-code or no-code technologies — a huge leap from under 25% in 2020. It's clear this trend is only going to accelerate. 

10. Extended Reality (XR) Outsourcing

Extended reality (XR), which includes virtual reality (VR), augmented reality (AR), and mixed reality (MR), is quickly becoming the next big thing across industries — from gaming to training and e-commerce. With the growing demand for immersive experiences, businesses are increasingly tapping into software outsourcing companies for XR development.

Outsourcing XR projects allows companies to access specialized talent without the steep learning curve or investment in new technology. Whether it's bringing a training program to life or transforming the retail experience with AR, outsourcing XR development keeps businesses ahead of the curve. As XR continues to blend into mainstream strategies, this trend is only set to grow.

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If you're interested in staying ahead of IT outsourcing trends, you might also want to explore our article on the best micro-SaaS ideas for innovative, niche business opportunities that can be developed with outsourced talent.

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IT Outsourcing Benefits

Outsourcing IT services offers businesses a wide range of benefits that go beyond just cost savings. First and foremost, it allows companies to focus on their core operations while leaving the tech-heavy lifting to specialized experts. Whether it's working with a software outsourcing company to handle custom development or relying on a vendor for cybersecurity outsourcing, the right partner can free up internal resources, letting your team do what they do best.

Another big advantage is access to top-tier talent from around the world. Regions like India, Latin America, and Eastern Europe are home to skilled IT professionals who bring a high level of expertise at a fraction of the cost of hiring in-house. This is especially useful when it comes to bridging talent gaps or finding specialists in fields like machine learning, cloud management services, or AI outsourcing.

Flexibility is another key benefit of IT outsourcing. Whether you need help with a one-time project or ongoing support, outsourcing allows you to scale your IT capabilities as needed. From outsourcing online marketing and business development to handling tasks like help desk support, legal logistics outsource, and e-commerce call center operations, outsourcing provides the agility to adjust your IT strategy as your business grows.

Finally, outsourcing often results in higher quality solutions, thanks to the extensive experience that many vendors bring to the table. Outsourcing partners have a deep understanding of best practices, emerging technologies, and industry standards, ensuring that the services you receive are not only efficient but also cutting-edge. So whether it’s improving security, increasing scalability, or speeding up your software development pipeline, outsourcing IT can offer a huge competitive advantage.

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Here, you can read more about the pros and cons of outsourcing mobile app development.

Pros & Cons of Outsourcing Mobile App Development in 2024

Wrapping Up: The Future of Outsourcing 

As we look to 2024 and beyond, the future of IT outsourcing is set to be driven by rapid advancements in AI, automation, and cybersecurity. Businesses will increasingly turn to low-code software development to stay competitive and efficient. 

Nearshoring will continue to grow, with Eastern Europe becoming an outsourcing hub for businesses seeking close collaboration and cost-efficiency. Traditional outsourcing markets such as India, Latin America, and Vietnam will also remain key players, providing top talent for tasks ranging from cloud management services to machine learning.

As outsourcing evolves, the focus will shift from purely cost savings to long-term partnerships, innovation, and flexibility. Companies will blend in-house and outsourced software development, relying on specialized vendors to help navigate emerging technologies like XR and ensure robust solutions that drive growth and scalability. Ultimately, outsourcing will be a strategic tool for businesses to future-proof their operations. 

FAQs on IT Outsourcing Trends

Why do companies choose to outsource work?

Companies choose to outsource work to reduce costs, access specialized expertise, and focus on core business functions without the burden of managing everything in-house. Outsourcing provides flexibility, allowing businesses to scale operations quickly, improve efficiency, and stay competitive in a fast-evolving market. It also enables companies to leverage global talent and advanced technologies, all while maintaining control over quality and timelines.

How big is the IT outsourcing market?

The global IT outsourcing market is expected to reach over $500 billion in 2024, with continued growth projected in the coming years. According to Statista, the global IT outsourcing market is projected to surpass $700 billion by 2028, reflecting steady growth driven by increasing demand for specialized services and cost efficiency.

Is outsourcing increasing or decreasing?

Outsourcing is on the rise, driven by a steady annual growth rate of around 6.8% from 2021 to 2028. This increase is fueled by businesses seeking cost savings, access to global talent, and cutting-edge technologies like AI and cloud services. As companies focus on scalability and efficiency, outsourcing remains a key strategy for staying competitive in an evolving market.

What is an offshore development center?

An offshore development center (ODC) is a dedicated team of software developers and IT specialists located in another country, typically where labor costs are lower. It operates as an extension of a company's in-house team, providing services like software development, testing, and maintenance. ODCs are often used by companies to reduce costs, access skilled talent, and scale their development capabilities while maintaining control over the project's direction and quality.

Which industry is an example of BPO?

An example of an industry that commonly uses business process outsourcing (BPO) is the customer service industry, where companies often outsource their call center or help desk support functions to external providers. In the BPO industry, other sectors that frequently rely on outsourcing include financial services, e-commerce, and accounting, particularly for back-office tasks like payroll, data entry, and customer management.